Euro Stablecoin Interest Frozen as ECB Deposit Rate Hits 2.5%
ECB raised its key rates by 25bp to 2.5%, but euro stablecoin holders see no benefit as MiCA bans interest payments.
2 h ago9 min read
August inflation readings rise across German states
August CPI in key German states rose, pointing to a national print near 2.9-3.0%, reinforcing ECB rate hike expectations.
31/08/2026 08:215 min read
State-level inflation data for August, released around the same time, show higher prints:
- Bavaria's August CPI stood at +2.9% year-on-year, compared with +2.8% previously
- Saxony saw August CPI at +2.9% y/y, up from +2.7% prior
- North Rhine Westphalia recorded August CPI of +2.9% y/y, versus +2.7% before
- Baden Wuerttemberg's August CPI was +2.6% y/y, after +2.5% earlier
Monthly figures also point to stronger gains after July's sharp increase:
- Bavaria's August CPI rose +0.2% month-on-month
- Saxony's August CPI gained +0.2% m/m
- North Rhine Westphalia's August CPI increased +0.2% m/m
- Baden Wuerttemberg's August CPI edged up +0.1% m/m
These numbers continue to indicate that price pressures are broadening, rather than being mostly driven by base effects.
Given these estimates, the overall German national print for August is expected to come in later at roughly 2.9% or 3.0% (rounded up), which aligns with estimates of 2.95% (3.0%).
While this does not alter the outlook for the European Central Bank going into September, it does strengthen the view that the central bank needs to adjust its positioning. The ECB is prepared to raise key interest rates once more in order to bring monetary policy to a mildly restrictive stance.
That is to ready itself for the fight against inflation and any second-round effects that could appear late this year or early next year.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
Related articles
US Treasury auctions $22 billion in 30-year bonds at 5.308% yield
US Treasury sold $22 billion in 30-year bonds at a high yield of 5.308%, with strong international demand.
4 h ago10 min read
Dollar Stagnation Threatens US Consumers and Markets
The US dollar has stalled for a month; a weak dollar could raise import costs for American consumers.
4 h ago7 min read
US Inflation Data Triggers Selloff in Gold, Crypto, Stocks
US producer prices rose 0.4% in August, pushing gold and bitcoin lower as rate hike expectations increased.
6 h ago10 min read