In a sudden development in the UK, the Bank of England reduced interest rates for the third time since August. The central bank’s decision comes amid the collapse of the prevailing encryption market, as it suffers from major currencies such as Bitcoin (BTC) and ETHEREUM (ETH) noticeable losses.
Since the bank’s interest rate reduces the Federal Reserve’s decision to retain the rate unchanged, it indicates the difference in monetary policy between the main economists. However, with the Monetary Policy Committee expecting a terrible position, the BOE price reduction sparked a significant impact on the encryption market.
England Bank reduces the interest rate to 4.5 %
According to Reuters reportThe Bank of England reduced interest rates by a quarter to 4.5 %. This represents the lowest level since June 2023. The monetary policy committee also expected that only additional interest rates will be necessary to reduce inflation and return it to the target rate of 2 %.
It is worth noting that the ruler Andrew Billy has been alerted against further cuts at the interest rate. Billy stated,
It will be a welcome news for many that we were able to reduce interest rates again. We will closely monitor the British economy and global developments and take a gradual and accurate approach to reduce prices.
The exact approach to the Central Bank of Monetary Policy
Moreover, the Bank of England highlighted the need for a “accurate” approach to potential decisions. Since the risks are now two sides, the committee assumed, “There are cases of uncertainty about the paths of both demand and supply in the economy that can have traces on monetary policy.”
Since the Central Bank has participated in a honesty position, society is less likely to invest in risky assets such as cryptocurrencies. If this leads to the process of selling panic, the encryption market will witness more decline.
Federal Federal Reserve Process for interest rates
After the FOMC meeting for two days, the Federal Reserve decided to keep the interest rate unchanged at a range of 4.25 % and 4.5 %. According to expectations, the Federal Reserve is expected to maintain a fixed rate for a larger part of the year.
The encryption market remained not affected after the FOMC meeting and interest rate decisions at the Federal Reserve. However, the industry collapsed shortly. The coding was mainly driven by the national emergency declaration of US President Donald Trump, which led to a trade war. The president imposed a 25 % heavy tariff on Mexico and Canada in addition to 10 % on Chinese imports.
Consequently, we must see how the interest rate of the Bank of England will affect the encryption market.
How will the interest rate affect the interest rate in the encryption market?
Currently, the encryption market seeks to recover from the recent turmoil while the Bank of England has brought down low interest rates. With the total market value of $ 3.22 trillion, a decrease of 0.47 %, the market is still in the decline.
Bitcoin is trading without a sign of 100 thousand dollars, which represents a marginal increase of 0.11 % over the past 24 hours. At a price of 98.7 thousand dollars, Bitcoin witnessed a 5.91 % loss during the past week and 1.96 % decreased during the past month.
Meanwhile, ETHEREUM and XRP have shown 14.45 % and 21.7 %, respectively, during the past seven days. Solana, BNB, and Dogecoin are also in the downtown direction, on the occasion of 16 %, 13 % and 22 %, respectively.
Nino against Jamal
NYNU V Jamal is an emotional encryption journalist with three years of experience in Blockchain, Web3 and Fintech balls. She has created herself as an attractive and attractive voice in the coded currency and blocks. She added her experience as a professor of English and literature assistant to her endeavor to formulate well and accessible media content.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
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