Interest rate correlation / ECB rate changes copy FED funds rate ?

Hi, do ECB interest rate changes copy FED funds rate ? Is ECB interest rate increasing and decreasing in the same or similar time when FED funds rate is being changed ? Is there a correlation between the changes of ECB interest rate and FED funds rate ?

Yes, there is a correlation between ECB interest rate and FED funds rate, but not as high as it may sometimes look.

FED funds rate reflects monetary policy in the US.

ECB interest rate reflects monetary policy in the Eurozone.

FED can raise or lower interest rates, according to the local or global economic situation. Economic situation in other countries (economics) is important, because it has an impact on US economy. Depending on countries and market situation, this impact can be sometimes higher and sometimes lower.

ECB is focusing on economic situation in Eurozone, but it also takes in consideration the global economic situation.

If you add interest rates of ECB and FED to the chart, you can see some similarities during a certain periods. For example, between 03/2020 and 03/2022, both interest rates were low. Since 07/2022 they are rising quite similarly, because the global economic situation has impact on US economy and Eurozone economy.