Critical Data Received From USA and Europe! Here’s Bitcoin’s Reaction!

After the Fed announced its interest rate decision yesterday, another development came from the European Central Bank.

European Central Bank Decides to Increase Rates by 50 Base Points

The European Central Bank on Thursday raised interest rates by half a percentage point, in a sign of concerns that inflation will remain high despite the recent fall in energy prices.

The increase, largely as expected, pushed the ECB’s benchmark deposit rate to 2.5 percent, its highest level since the global financial crisis.

After the European Central Bank’s interest rate decision, unemployment data came from the USA:

US initial jobless claims: 183k (Previous 186k; Estimate 195k)

Request of bitcoin His reaction to the developments:

The European Central Bank is raising interest rates at a record rate to combat the sudden surge of inflation in the eurozone as a result of factors such as the COVID-19 pandemic and the energy crisis following Russia’s invasion of Ukraine.

The central banks of 20 countries that use the euro, in line with the statement made in December, increased the deposit rate by half a point to 2.5% on Thursday.

That would push the ECB’s rate on bank deposits to the highest since November 2008 after a steady climb from a record low of -0.5% in July.

But European Central Bank Governor Christine Lagarde is sure to face questions about smaller increases from next month, after the US Federal Reserve slowed its rate of hikes on Wednesday and some data pointed to a more bleak outlook for the eurozone.

The FEd’s raising interest rates again and saying that more rate hikes are needed, as well as acknowledging that the curve on inflation has now turned and disinflation has begun, revived the stocks.

Lagarde has so far dismissed allegations that the ECB is lax in its fight against inflation, and investors generally expect Lagarde to confirm that line on Thursday, an expectation that drove the euro sharply higher overnight.

*Not investment advice.