![Why don’t financial markets believe the ECB?](/.imaging/mte/efg-revamp/547x300/dam/efg/insights/2021/The-ECB-strategy-review-revealed/Insight_BCE_530x395px.jpg/jcr:content/Insight_BCE_530x395px.jpg)
Why don’t financial markets believe the ECB?
At its meeting on 2 February, the ECB hiked by 50bps, maintaining a restrictive stance. Surprisingly, financial conditions eased during President Lagarde's press conference despite her signalling that there are more rate hikes to come. In this Macro Flash Note, GianLuigi Mandruzzato argues that what happened reflects a loss of the ECB’s credibility to markets.