Lagarde: Iranian ceasefire insufficient to alleviate energy shock

According to CryptoBriefing, as reported by Techub News, European Central Bank President Christine Lagarde warned that despite the US-Iran ceasefire agreement, high energy costs and supply chain disruptions will keep eurozone inflation high for months. The bank has raised interest rates by 25 basis points to 2.25%, the first time since 2023. This rate hike has increased the attractiveness of euro savings and bonds, raising the opportunity cost of holding non-interest-bearing assets. With European savers able to obtain a 2.25% risk-free return, the threshold for allocating funds to volatile assets such as cryptocurrencies has increased.