ECB Rate Hike European Central Bank Raises Interest Rate By 50 Basis Points Know Details

ECB Rate Hike: The banking crisis that started in America has now started engulfing the world. In the last one week itself, two big banks Silicon Valley Crisis and Signature Bank have sunk. On the other hand, Credit Suisse Bank of Switzerland also seems to be in trouble, but in the midst of all this, the European Central Bank has once again increased its interest rates.

The European Central Bank has decided to increase its interest rates by a full 50 basis points i.e. 0.50 percent. After this increase, the bank’s deposit rates have increased to 3 percent. With this, the bank has given a clear indication that inflation is still an important issue for it. Many investors had appealed to the bank to bring some softening in the interest rates, which the bank has clearly ignored. ECB is the central bank of 20 countries of the euro zone.

The goal is to reduce inflation

In the last few times, the graph of inflation has gone up rapidly in the whole world including Europe. The European Central Bank has set a target by 2025 to reduce inflation below the 2 percent mark. After this increase, the deposit rate of ECB has reached 3 percent. At the same time, in this week, a tremendous decline is being recorded in the shares of European banks. Earlier, the reason for this decline has come due to the sinking of Silicon Valley Bank and Signature Bank. Due to the poor economic condition of Credit Suisse Bank, there has been a tremendous decline in banking stocks.

Credit Suisse Bank got help

To improve the poor financial condition of Credit Suisse Bank, the Swiss National Bank has decided to provide financial assistance of $ 54 billion to Credit Suisse Bank. Through this, an attempt has been made to meet the cash crunch in the bank and win the confidence of the investors. After this announcement by the Swiss National Bank, once again the shares of Credit Suisse Bank have seen a rise of 20 per cent. It has gone up to 20 per cent. Earlier on Wednesday, its stock had seen a huge fall of up to 25 per cent. After the rise in the shares of Credit Suisse Bank on Thursday, its positive effect has been seen in other banking stocks as well.

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