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Jeroen Blokland reports that European Central Bank President Lagarde and her colleagues have raised interest rates from 2.0% to 2.25%.
Headline inflation currently stands at 3.2%. The rate hike is described as a response to a major energy shock and is considered robust across various scenarios, according to Blokland.
Blokland recently reported that semiconductor stocks dropped more than 10 percent as strong U.S. jobs data increased concerns about higher Federal Reserve rates, according to a previous article. He also noted that the Bank of France is preparing to cut its 2026 growth forecast after a first-quarter economic contraction, as detailed in an earlier report. These developments provide additional context to the ECB’s decision on rates.