Bank AI

The European Central Bank (ECB) announced on October 26th that it would keep interest rates unchanged. It was revealed that past interest rate hikes continued to have a strong impact on financing conditions. Officials also made statements regarding the Pandemic Emergency Purchase Programme (PEEP), stating that principal payments would be reinvested by the end of 2024 at the latest.
<h2 class="p1" style="text-align: justify" id="unexpected-decision-from-ecb">Unexpected Decision from ECB</h2>
In a period where data indicating the continuation of economic contraction in the European Union has increased, the European Central Bank (ECB) avoided raising interest rates for the first time in 15 months on October 26th. The ECB kept the benchmark interest rate for the 20 countries using the euro, which is the fiat currency, at the highest level since its introduction in 1999, at 4%. The following statements were included in the statements made by the central bank:
<blockquote>
 “Inflation is still expected to remain very high for a very long time and domestic price pressures continue to remain strong. At the same time, inflation has significantly decreased in September and most of the measures underlying inflation continue to ease.”
</blockquote>
The decision to pause the interest rate hike, following 10 consecutive interest rate hikes, came after data indicating the continued decline in inflation and a sharp decline in production following a weak demand among companies operating in the manufacturing and service sectors in the Eurozone, published on October 24th.
<img decoding="async" class="aligncenter wp-image-89573 size-full" src="https://coin-turk.com/wp-content/uploads/2020/05/abnin-750-milyar-euroluk-tesvik-paketi-btcyi-nasil-etkiler.jpg" alt="" width="1200" height="675">
<h2 id="pmi-data-indicates-recession">PMI Data Indicates Recession</h2>
According to the Purchasing Managers’ Index (PMI), companies resorted to employment cuts, indicating the first decrease in personnel since the Covid-19 quarantine period at the beginning of 2021. The index, which was 47.2 in September, fell to 46.5 in October, reaching its lowest level in the last 35 months. Having this index below 50 indicates a contraction in <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">market</a> conditions.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, who collaborated with S&amp;P Global to analyze PMI data, made the following comment about these data:
<blockquote>
 “Things are going from bad to worse in the eurozone. It would not surprise us to see a mild recession in the Eurozone in the second half of this year.”
</blockquote>
The survey of credit providers published by the ECB on October 24th also reveals that demand for business loans and mortgage loans continued to decline sharply in the third quarter of the year, more than banks had expected. The report also stated that banks continued to tighten credit standards in all loan categories. Continue Reading: <a href="https://en.coin-turk.com/unexpected-decision-from-ecb-interest-rates-remain-unchanged-despite-economic-slowdown/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/unexpected-decision-from-ecb-interest-rates-remain-unchanged-despite-economic-slowdown/</a>

Unexpected Decision from ECB: Interest Rates Remain Unchanged Despite Economic Slowdown

Table of Contents

COINTURK NEWS

Other articles published on Oct 26, 2023

Bloomberg analyst: BlackRock’s spot Bitcoin ETF is now available on the Nasdaq trading clearing c...

UK leads Central, Northern, and Western Europe in cryptocurrency activity: Chainalysis

Bittensor TAO Crypto Price Prediction: A Comprehensive Analysis

SEC Chairman Clarifies Cryptocurrency Regulations and Enforcement Actions

Supra and Google Partner to Bring Fast Price Feeds to Financial Markets

In the legal battle between Ripple and the SEC, a cryptocurrency lawyer discloses the reasons beh...

Join our free newsletter for daily crypto updates!