The European Central Bank (ECB) decided to raise its three key interest rates by 25bps, in line with our expectations. It also decided to set the remuneration of minimum reserves at 0%. 

There was a lack of forward guidance on what the ECB might do next, but it modified the language to signal a shift from an explicit tightening bias towards an outright neutral stance. 

Just like the ECB, we hold an “open mind as to what the decisions will be in Sep and in subsequent meetings”; though for now, we are keeping to our view of a pause in the current tightening cycle.