# Europe's central bank backs larger-than-expected rate hike | AP News

> The European Central Bank raised interest rates on Thursday for the first time in 11 years, by a larger amount than expected. The move followed similar steps by the US Federal Reserve and other major central banks to combat high inflation.

- Date: 2022-07-21 · published 2022-07-21T12:00:00.000Z
- Category: macro · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/40711-europe-s-central-bank-backs-larger-than-expected-rate-hike-ap-news
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Synchronized global tightening strengthens currencies against the euro and raises borrowing costs across the feed and livestock chain. The net effect is firmer dollar terms for global commodity prices and weaker demand for credit-financed purchases.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-12-15 | [European Central Bank slows rate hikes but vows more ahead \| AP News](https://feedsoft.ai/events/38437-european-central-bank-slows-rate-hikes-but-vows-more-ahead-ap-news.md) | -0.5% | +1.5% |
| EURUSD | 2023-06-15 | [European Central Bank hikes rates again and vows more after US Fed hits pause \| AP News](https://feedsoft.ai/events/35700-european-central-bank-hikes-rates-again-and-vows-more-after-us-fed-hits-pause.md) | +0.9% | +3.5% |
| EURUSD | 2024-01-25 | [European Central Bank holds rates steady, gives no hint at cuts ahead](https://feedsoft.ai/events/32341-european-central-bank-holds-rates-steady-gives-no-hint-at-cuts-ahead.md) | -0.4% | -0.8% |
| EURUSD | 2022-06-09 | [European Central Bank confirms July rate hike plans, raises inflation projections](https://feedsoft.ai/events/41163-european-central-bank-confirms-july-rate-hike-plans-raises-inflation-projections.md) | -3.3% | -5.2% |
| EURUSD | 2026-04-30 | [European Central Bank keeps rates on hold as inflation jumps](https://feedsoft.ai/events/19941-european-central-bank-keeps-rates-on-hold-as-inflation-jumps.md) | +0.5% | -0.4% |
| DXY | 2023-06-15 | [European Central Bank hikes rates again and vows more after US Fed hits pause \| AP News](https://feedsoft.ai/events/35700-european-central-bank-hikes-rates-again-and-vows-more-after-us-fed-hits-pause.md) | -0.0% | -1.5% |
| DXY | 2024-03-06 | [Euro is back on the scene for global central banks](https://feedsoft.ai/events/31421-euro-is-back-on-the-scene-for-global-central-banks.md) | -0.6% | +0.3% |
| DXY | 2023-07-31 | [Central Banks gearing for a prolonged pause? Dollar slips, commodities gain on US Fed rate hike - CaFE Invest News \| The Financial Express](https://feedsoft.ai/events/34962-central-banks-gearing-for-a-prolonged-pause-dollar-slips-commodities-gain-on-us.md) | +0.9% | +2.3% |

## Sources

- apnews.com: https://apnews.com/article/russia-ukraine-inflation-economy-prices-bb3fd1e9cba9c60a8515ff83b2669827

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