BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home FINANCE

The European Central Bank Increases its Base Interest Rate by 0.5 Percent, Despite the Chaos in the Banking Sector

by BlockNews Team
March 21, 2023
in FINANCE, INVESTING, MEDIA, POLITICS
Reading Time: 3 mins read
A A
1
SHARES
18
VIEWS
Share on XShare in TelegramShare on Reddit
  • Even amidst the chaos in the United States banking sector, the European Central Bank increases base interests in its fight against inflation.
  • European Central Bank announces intentions to prioritize fighting inflation.
  • The United States banking sector is in a state of disarray.
  • Inflation has gone down to 6%, which is a considerable decline from its 9% high last year but still higher than the 2% it was formerly at.

While the United States banking sector and the banking sector, in general, have been in turmoil for the past week, the European Union has increased its base interest rate by 0.5 percent.

However, there had been rumors that the economists in Brussels would ask for a minor increase in their interest rate after watching the crisis triggered by the collapse of three banking institutions in the US unfold last week.

The news of the increase in the interest rate spread panic to Credit Suisse, whose material weakness was uncovered in a financial report, with a gaping need to borrow $54 billion.

The president of the European Central Bank, Christine Lagarde, also indicated that they had decided to put the battle against inflation and put it under control as a top priority while also calling the European banking sector a resilient one, with an added warning of the potential of inflation going on for too long.

While traders had hoped that the central bank would demand a modest 0.25 increase in rate after the collapse of Silicon Valley, Silvergate, and Signature, that was not the case. The latest consumer price index reading is at 6%.

6% is considerably higher than the target of 2%. Inflation is starting to see a decline considering how it surged beyond 9% last year.

A spike of nine-month highs of $26,514 during the week, pushed forward when the United States government took over Silicon Valley bank, also affected cooling Bitcoin down.

The disarray in the United States banking sector has put the financial institution space on edge. Other institutions like Anchorage are opting to lay off workers to keep their businesses afloat and focus their resources. While they did not respond to that being the reason, there is a fair chance it could be attributed to that.

Conclusion

Anchorage laid off 75 of its employees when news of the decline in the United States was spreading, so other institutions may follow in their footsteps to keep their business afloat.

The collapse of Silvergate bank, Silicon Valley Bank, and signature bank caused a lot of chaos in the crypto space. It has left crypto companies exposed to them scrambling and announcing their exposure while discussing how to retrieve their funds from the collapsed banks.

Tags: BankingEUEuropean Central BankInterest RatesPolitics
TweetShareShare
Previous Post

Signum Digital Gains Approval to Offer Security Tokens in Hong Kong

Next Post

Sam Bankman-Fried Receives $2.2B in Payment from FTX, According to New Management

DON'T MISS THESE! HOT OFF THE PRESS

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself
CRYPTO

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape
CARDANO

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish
BITCOIN

$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish

July 18, 2025
Load More

Related News

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin US Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.