ECB Deposit Facility Rate Holds Steady at 2.25%

The European Central Bank (ECB) today announced its Deposit Facility Rate decision, holding the rate steady at 2.25%. This matches the previous rate of 2.25%. No consensus figure was available for this release, meaning the outcome was in line with market expectations of no change.

Initial market reaction across EUR pairs has been limited following the announcement. Fifteen minutes after the release, EURUSD moved -9.2 pips, while EURJPY moved -3.1 pips. EURAUD saw a +4.4 pip move, and EURCHF gained +3.7 pips. EURCAD moved -2.1 pips, EURGBP -2.0 pips, and EURNZD -1.0 pips. These movements are relatively small when compared to the historical median 1-hour moves for this event. For instance, EURUSD typically sees a median 1-hour move of 25 pips after past releases, and EURJPY a median of 28 pips. EURCHF’s median 1-hour move is 9 pips. The current observed movements are well below the top-quarter release thresholds for most pairs, suggesting a subdued immediate market response.