Please find below a brief response from Peter Goves, a bond strategist at MFS Investment Management, regarding today’s ECB meeting.

The ECB delivered the expected “no brainer” rate hike today and continues to signal a high degree of vigilance. Policymakers acknowledged that “inflation is set to remain well above Target for an extended period,” reinforcing the view that further tightening remains possible should the ECB consider it necessary. As a result, markets are likely to continue pricing a degree of additional hike risk into the curve for the time being.