🚀 Alert: ECB set to change monetary strategy!
To curb inflation stemming from the energy crisis due to the Middle East conflict, the European Central Bank (ECB) is likely to hike interest rates this coming Thursday.
Key numbers to watch:
🔹 Deposit rate: Expected to rise from 2.00% to 2.25%
🔹 May inflation: Hit 3.2%, well above the 2% target
🔹 Economic growth: Continues to decline in Q1
Quick analysis:
The ECB's decision to tighten monetary policy ahead of the US and UK highlights the severity of the energy price crisis. This is a risky move: on one hand, they want to quench inflation, but on the other hand, it could inadvertently apply more pressure on a weakening economy.
In the long run, if this tightening cycle officially begins, global liquidity will tighten, directly impacting the trading sentiment of risk assets, including Crypto.
How do you think the cryptocurrency market will react to this move from Europe?
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