The ECB's decision to raise the deposit rate to 2.25% breaks a pause since early 2023, indicating a renewed focus on inflation containment. President Lagarde's hawkish commentary underscores the central bank’s readiness to maintain a restrictive policy stance if inflation remains elevated. This tightening cycle is likely to support the euro in the near term as markets adjust expectations for future rate moves. Traders should watch inflation data closely, as any persistent price pressures could prompt additional hikes, while signs of economic slowdown might temper further tightening.