European Central Bank (ECB) Repeats Interest Rate Decision, Bitcoin Price Sees Relief
Crypto Market News: The European Central Bank (ECB) on Thursday announced its decision to raise the three key ECB interest rates by 25 basis points. The bank’s Governing Council decision will mean the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 4.00%, 4.25% and 3.50% respectively. These rates will take effect from 21 June 2023. This comes at the back of the crypto market taking a slump following the US Federal Reserve’s hints on chances of raising rates later in 2023.
Also Read: Crypto Crash: XRP, Ethereum Leads Sell Off As Crypto Market Bleeds
The ECB reasoned the rate hike decision by citing the possibility of inflation remaining too high for a long time although it has been coming down. In reaction to the ECB rate hike, Bitcoin price rose on Thursday amid a 4.19% decrease over the last 24 hours. The European Central Bank took a similar decision during its May 2023 meeting, leading to an encouraging crypto market reaction.
ECB: Inflation Pressures Remain Strong
The ECB Governing Council forecasted a drop in inflation rate over the next two years. The ECB Council said in a statement:
“According to the June macroeconomic projections, Eurosystem staff expect headline inflation to average 5.4% in 2023, 3.0% in 2024 and 2.2% in 2025. Indicators of underlying price pressures remain strong, although some show tentative signs of softening.”
Going forward, the ECB said will look to take a ‘sufficiently restrictive’ stance when it comes to achieve the target of bringing inflation down to the 2% target in medium term.
Also Read: Binance’s BNB Chain To Announce Layer 2 Blockchain Solution
- Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump
- Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- ‘Trump Insider Whale’ Increases Bitcoin Short As U.S. Counters China in New Australia Deal
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
