Mārtiņš Kazāks, Governor of the Bank of Latvia and a member of the European Central Bank’s Governing Council, told Econostream Media on June 29 that there is “no need for multiple ECB hikes in a rushed way.” The statement lands just weeks after the ECB raised its three key interest rates by 25 basis points on June 11, its first hike in nearly three years.
What actually happened with ECB rates
The June 11 hike pushed the ECB’s deposit facility rate to 2.25%, effective June 17. The main refinancing rate now sits at 2.40%, and the marginal lending rate at 2.65%.
Those numbers matter because they set the baseline cost of money across the eurozone. When rates go up, the opportunity cost of holding assets that don’t generate yield, like Bitcoin or most altcoins, goes up with them.
Kazāks pointed to a significant decrease in the probability of severe negative economic scenarios, suggesting the ECB’s outlook has improved enough that a measured approach makes sense.
