Today is one of the important days for Bitcoin (BTC), the largest crypto currency. Here are today and expectations …
Experts draw attention to these developments for gold and BTC
The rapidly rising inflation, interest rate hikes and the risk of stagnation come to the fore. According to Analyst Phil Carr, this will continue in the second half of 2022. Looking at this week, Trader’s attention is at the Monetary Policy meeting of the Central Bank of the UK. As one of the closely monitored “4 Great Central Bank ,, this event is expected to be an important market mobility and shocking. In particular, Boe is expected to follow the Fed’s footsteps by performing the first interest rate hike. If it happens, this will be the first interest rate hike since 1995.
The Central Bank of the UK is expected to increase the key interest rate by 50 basis points to 1.75 percent. Thus, the largest interest rate hike in 27 years. Meanwhile, the bank is desperately struggling to combat record -high inflation. Current levels are far above the United Kingdom government’s inflation target. Since food, fuel, housing, clothing and energy prices continue to increase at a record rate and deepening the country’s historical living cost, there are fears that inflation can exceed 12 percent by October.
The Central Bank of the UK is concerned about staying behind its peers, especially the US FED, which increased its interest rates in a total of 200 basis points in the last 60 days. Kriptokoin.comAs we have reported, the Fed pointed out that the interest rate hike may be on cards for September.
Impact on other central banks and global economy
On the contrary, the European Central Bank waited until last month to increase interest rates. However, he reacted with an increase of a larger half -point than expected. A number of large rates of large proportions made by the FED cannot be denied that it puts pressure on central banks around the world to resist rising inflation and powerful dollars.
According to the analyst, every major central bank interest rate hike brings the global economy one step closer to the stagnation. These possibilities once again emerged with the warning of the economists’ Central Bank monetary policy makers that the maker makers have created the greatest risk for recession this year ”. The increasing number of economists claims that the stagnation has already come. Analyst Phil Carr explains how these developments will affect the precious metal market as follows:
If history has taught us something, then the only thing we know is, whether permanent inflation or stagnation, both scenaries are a highly profitable ground for precious metal prices. Currently, this is a trader market full of endless opportunities to take advantage of short -term macro -guided volatility. This is the most suitable strategy right now!
