{"id":18851,"date":"2023-03-17T22:45:51","date_gmt":"2023-03-17T22:45:51","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/undeterred-by-fears-of-a-banking-crisis-ecb-raises-interest-rates-by-50bps-economics-bitcoin-news\/"},"modified":"2023-03-17T22:45:51","modified_gmt":"2023-03-17T22:45:51","slug":"undeterred-by-fears-of-a-banking-crisis-ecb-raises-interest-rates-by-50bps-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/undeterred-by-fears-of-a-banking-crisis-ecb-raises-interest-rates-by-50bps-economics-bitcoin-news\/","title":{"rendered":"Undeterred by Fears of a Banking Crisis, ECB Raises Interest Rates by 50bps \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The European Central Bank (ECB) has convened to raise three of its key interest rates by 50bps (0.5%), fueled by the persistence in the inflation numbers reported by the bloc. Christine Lagarde, president of the institution, stated that the banking sector in Europe was resilient and that the institution was ready to provide liquidity if necessary.<\/strong><\/p>\n

European Central Bank Hikes Rates in Battle Against Inflation<\/h2>\n

The European Central Bank (ECB) has decided to keep raising interest rates in its war against inflation. On March 16, the institution announced a hike of 50 basis points (bps) in its three key interest rates, taking its main refinancing rates and the rates on the marginal lending facility and the deposit facility to 3.50%, 3.75%, and 3.00% respectively, effective March 22.<\/p>\n

Christine Lagarde, president of the ECB, cited inflation as the main cause of this hike, stating<\/a> that \u201cinflation is projected to remain too high for too long.\u201d While the inflation numbers have been falling, going from 9.2% in December to 8.5% in February, the goal of the institution is to return to a steady 2%. The ECB predicts that it will come close to this goal in 2025, expecting inflation to come down to 2.2% by that time.<\/p>\n

The recent decline was primarily spearheaded by the energy price downtrend; however food and beverages prices soared by 15% during the same period.<\/p>\n

Banking System Said to Be \u2018Resilient\u2019<\/h2>\n

The institution did not address directly the recent developments that took Credit Suisse, one of the biggest Swiss banks, to the brink of collapse, ultimately receiving a $54 billion bailout<\/a> from the Swiss National Bank.<\/p>\n

However, the ECB declared:<\/p>\n

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The euro area banking sector is resilient, with strong capital and liquidity positions. In any case, our policy toolkit is fully equipped to provide liquidity support to the euro area financial system if needed and to preserve the smooth transmission of monetary policy.<\/p>\n<\/blockquote>\n

The collapse of Credit Suisse comes after the recent closure and intervention of three U.S-based banks \u2014 Signature<\/a> Bank, Silicon Valley<\/a> Bank, and Silvergate<\/a> Bank \u2014 which have investors from all around the world fearing<\/a> this might spark a banking crisis at an international level.<\/p>\n

However, the ECB made it clear it remains committed to its resolution of diminishing inflation, explaining it will \u201cstand ready to adjust all of our instruments within our mandate to ensure that inflation returns to our medium-term target.\u201d<\/p>\n

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baking<\/a>, Banking<\/a>, Christine Lagarde<\/a>, credit suisse<\/a>, ECB<\/a>, European Central Bank<\/a>, hikes<\/a>, interest rates<\/a>, Signature Bank<\/a>, Silicon Valley Bank<\/a>, Silvergate Bank<\/a><\/div>\n<\/div>\n

What do you think about the ECB\u2019s recent interest rate hike? Tell us in the comments section below.<\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, ilolab \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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