A week of high-stakes decisions is approaching, with the European Central Bank (ECB) set to consider another interest rate cut and Microsoft’s board voting on adding Bitcoin to its portfolio. The central bank may reduce rates by 25 basis points (bps), following policymaker Robert Holzmann’s suggestion that a cut could happen on December 12.
Market expectations point to consistent rate cuts through next June, with the deposit rate projected to fall from 3.25% to 1.75% by the end of 2025. This could stimulate economic growth, according to economists. However, investors are also concerned about U.S. inflation data due on Wednesday, which may influence the Fed’s policy moves.
Gold prices have surged as investors await this crucial data, with spot gold rising by 1% to around $2,650 per ounce. The expected lower rates and potential “hawkish cut” from the Federal Reserve could make non-yielding gold more attractive.
Microsoft’s board will vote on December 10 to decide whether to add Bitcoin to its portfolio, with supporters arguing it could cement the cryptocurrency as a mainstream asset. Opponents, including co-founder Bill Gates, highlight concerns over its volatility and lack of intrinsic value.
Source: https://www.ccn.com/news/business/ecb-rates-microsoft-bitcoin