# ECB hikes rates, throws lifeline to indebted countries

> The ECB raised its deposit rate by 50 basis points to zero percent, its first increase in 11 years and larger than its own guidance. The move was aimed at tackling inflation and also offered support to heavily indebted euro-area countries.

- Date: 2022-07-21 · published 2022-07-21T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/40710-ecb-hikes-rates-throws-lifeline-to-indebted-countries
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher euro rates narrow the gap with US rates and can lift the euro, which weakens the dollar and gives some support to dollar-priced commodities. Tighter money also raises financing costs for farms and feed mills.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2023-06-15 | [ECB in no mood to pause after lifting rates to 22-year high](https://feedsoft.ai/events/35699-ecb-in-no-mood-to-pause-after-lifting-rates-to-22-year-high.md) | +0.9% | +3.5% |
| EURUSD | 2023-02-22 | [Investors increase bets on ECB lifting rates to all-time high](https://feedsoft.ai/events/37539-investors-increase-bets-on-ecb-lifting-rates-to-all-time-high.md) | -0.5% | +1.1% |
| EURUSD | 2022-02-03 | [ECB opens door to 2022 rate hike in policy turnaround](https://feedsoft.ai/events/9870-ecb-opens-door-to-2022-rate-hike-in-policy-turnaround.md) | +1.2% | -2.2% |
| EURUSD | 2023-03-15 | [ECB cuts through bank turmoil to keep rate hike pledge \| Reuters](https://feedsoft.ai/events/37073-ecb-cuts-through-bank-turmoil-to-keep-rate-hike-pledge-reuters.md) | +0.4% | +1.7% |
| EURUSD | 2022-12-15 | [ECB raises interest rates by 0.5%, signals more to come](https://feedsoft.ai/events/38439-ecb-raises-interest-rates-by-0-5-signals-more-to-come.md) | -0.5% | +1.5% |
| DXY | 2022-02-03 | [ECB opens door to 2022 rate hike in policy turnaround](https://feedsoft.ai/events/9870-ecb-opens-door-to-2022-rate-hike-in-policy-turnaround.md) | -0.3% | +0.7% |
| DXY | 2023-03-15 | [ECB cuts through bank turmoil to keep rate hike pledge \| Reuters](https://feedsoft.ai/events/37073-ecb-cuts-through-bank-turmoil-to-keep-rate-hike-pledge-reuters.md) | -0.1% | -1.2% |
| DXY | 2019-01-01 | [Fed decision: Central bank lifts interest rates, lowers forecasts to two hikes in 2019](https://feedsoft.ai/events/61751-fed-decision-central-bank-lifts-interest-rates-lowers-forecasts-to-two-hikes-in.md) | -0.7% | -1.7% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/ecb-finally-join-rate-hike-club-with-big-move-agenda-2022-07-20/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.