ECB delivers huge interest rate hike despite banking sector “tensions”
The European Central Bank on Thursday raised interest rates by a half percentage point as officials continue an aggressive battle against inflation despite some signs of stress in the banking system.
Why it matters: The supersized rate increase means the troubles at Credit Suisse and financial market jitters were not enough for the central bank to back off its inflation fight.
https://www.axios.com/2023/03/16/europe-bank-rate-hike-banking
The FED will likely do the same
Leads to CBDC as the answer.
How much Interest will a CBDC account pay ?
If Zero
That’s another problem for them .
Can one used CBDC in a trading account to short-CBDC?