The European Central Bank says interest rates again, they say they do not want to do anything with Bitcoin

On January 30, the European Central Bank (ECB) decided to reduce the three major interest rates by 25 basis points. This is the rate of deposit facilities to 2.75 %, the main re -financing rate of 2.90 %, and the marginal lending rate of 3.15 %. The changes will be conducted secret on February 5, 2025, according to the European Central Bank advertisement.

It is said that this decision aims to help them hit them out of reach The target of inflation is 2 %. The European Central Bank says that inflation is on the right track. Inflation behaves as predicted by employee expectations, and is expected to settle near 2 % this year.

But at the present time, inflation pressure is still going along because wages and prices in some sectors take their beautiful time to adapt to the previous prices.

The ruling council admitted this delay, although they also said that wage growth is recently calming and that corporate profits are intending some inflationary heat.

If you think these price cuts mean that borrowing is cheap and suddenly easy, think again. Companies and families still feel pressure. Yes, new loans may come at lower rates, but many current loans roll up at higher costs due to previous increases.

The European Central Bank confirmed today that monetary policy remains restricted. However, they believe that with the improvement of real people’s income and the painful effects of raising prices fade, the demand will eventually pick up.

The Governing Council also made it clear that it does not close itself in any specific plan for future average changes. Decisions depend on the data you get before each meeting.

European Central Bank President Christine Lagarde has strengthened this during her press conference after the reports today, saying that any amendments to her price will be based on the economic and financial data received, in addition to the success of the current policies.

The European Central Bank budget has become more striking as well. The central bank retracts asset purchases. Each of the asset purchase program (APP) and Pandemar (PEP) purchase program is allowed to decline at a predictable rate. They no longer re -invest the main payments of securities due under these programs.

Moreover, banks paid the last remaining loans that they borrowed under the target financing operations (TLTRO) targeted to the European Central Bank (TLTRO) on December 18, 2024. This brings this part of the process of normalizing the public budget of the European Central Bank to an official end.

The Governing Council also reminded their safety network market: TPI. This tool is designed to stop any uncontrolled market conditions that can disrupt the flow of monetary policy throughout the euro area. Basically, they are ready to intervene if things are going on.

Lagarde closes Bitcoin conversations after the Czech proposal

Meanwhile, after the Czech National Bank Governor Alice Michael suggested adding Bitcoin to his country’s official reserves, Lagarde was quickly closing this. She said during the press conference today: “I am sure that … Bitcoins will not enter into the reserves of any of the central banks in the General Council.”

Although the Czech Republic does not use the euro, the central bank has part of the General Council of the European Central Bank, which advises the European Union member states on fiscal policy. Michl comments, which were made on January 29, caused a stir in the financial circles because central banks have historically kept their distance from encrypted currencies.

Bitcoin was created, after all, as a contestant against the traditional banking system. Lagarde said that she had spoken to Michel and that they had reached an understanding. “The central bank reserves must be liquid, safe and safe,” she added.

The Czech National Bank did not completely close the door on new ideas. They announced today that the Board of Directors agreed to an analysis to explore the diversification of their reserves with the chapters of other assets. However, they did not mention Bitcoin in this plan.

Meanwhile, the central bank in Poland rejected the idea of ​​investing in encrypted currencies. They rejected it as “the category of high -risk assets.” Likewise, the Central Bank of Romania confirmed that they do not have zero plans to include “digital assets” in their reserves.

Through the Atlantic Ocean, it appears that the President of the US Federal Reserve, Jerome Powell, has changed his position. On January 29, during his press conference, in which he decided not to cut prices, Powell said that he would support banks in providing encryption services to customers.

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