The post Eurozone inflation eases to 2.2% – More ECB rate cuts ahead? appeared on BitcoinEthereumNews.com.

The Eurozone’s inflation just hit a new low. The latest numbers show a drop to 2.2% in August, a three-year low. That’s down from 2.6% in July, and it’s exactly what economists were predicting, but the decline is still grabbing attention.  This dip might be pushing the European Central Bank (ECB) toward slashing rates in September. Core inflation, which leaves out volatile stuff like energy and food, also slipped to 2.8% from 2.9% in July. Again, right on target with what the experts predicted. However, the Euro isn’t having a great day. After these numbers came out, the currency dropped 0.1% against the British pound, trading at 0.8408. Against the US dollar, it ticked up a tiny bit, just 0.04%, landing at $1.1083.  Traders are looking ahead to rate cuts from the Federal Reserve as well. Philip Lane, the ECB’s chief economist, has been hinting that more rate cuts are probably on the way.  He explained that holding interest rates too high for too long could mean inflation stays stuck below target for a while, adding it’s still uncertain if inflation will actually hit the ECB’s 2% goal anytime soon. On the same page but a bit more cautious is Isabel Schnabel from the ECB’s executive board. She said she’s open to rate cuts too, but thinks the bank should “proceed gradually and cautiously.” So, there’s a bit of a split in how fast and how far the ECB should go with cutting rates.  Jerome Powell, Chairman of the Federal Reserve If both the ECB and the Fed decide to cut rates in September, it could set off some big moves in the crypto market. Lower rates usually mean cheaper borrowing and more money floating around, which could drive more people to invest in riskier assets like Bitcoin. Market forecasts…

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Filed under: News - @ August 30, 2024 11:19 am