Euro Rises After ECB Cuts Rates, Stresses Future Decisions Will Depend on Data

The euro rises against the dollar after the European Central Bank cut interest rates by 25 basis points, as widely expected, but said risks to inflation remained and that future decisions would depend on upcoming data. The ECB said inflation had come down sufficiently to warrant cutting rates but warned that because price pressures "remain strong" and wage growth is "elevated," inflation was likely to stay above target well into next year. "The Governing Council will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction," it said.