Last Minute: The European Central Bank Announced Its Interest Rate Decision! Bitcoin (BTC) Reacts!

The European Central Bank (ECB) announced its interest rate decision.

The European Central Bank raised interest rates by 50 basis points.

Expectations were for an increase of 50 basis points.

Bitcoin (BTC) The price reacted downward to the development:

Swiss Central Bank Handled the Credit Credit Suisse Crisis in Europe

However, the European Central Bank’s decision came in the midst of a banking crisis in Europe. The European Central Bank told ministers on Tuesday that some EU banks may be vulnerable.

The ECB, which has been increasing interest rates at a record pace to reduce inflation since July, promised an increase of 50 basis points for today and signaled more moves in the coming months.

But the collapse of Silicon Valley Bank in the US last week raised concerns about stress in the banking sector and caused stocks to plummet as long-troubled Credit Suisse was at the center of the collapse in Europe.

Stocks surged on Thursday after the Swiss National Bank gave Credit Suisse a bailout of $54 billion, while the volatility, which worried the ECB as monetary policy works through the financial system, put the markets under stress.

This requires the ECB, the central bank of 20 euro-using countries, to reconcile its duty to combat inflation with the need to maintain financial stability in the face of financial turmoil, largely from outside.

“Support from the Swiss Central Bank to Credit Suisse removes enough systemic risk that the ECB could raise interest rates by 50 basis points today,” said Lorne Baring, Managing Director of B Capital SA.

*Not investment advice.