ECB Raises Deposit Rate To 4.00% From 3.75%
Portfolio Pulse from Benzinga Newsdesk
The European Central Bank (ECB) has increased its deposit rate from 3.75% to 4.00%.
September 14, 2023 | 12:18 pm
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NEUTRAL IMPACT
The ECB's decision to raise its deposit rate may impact VGK, an ETF that tracks European stocks.
The ECB's decision to raise its deposit rate could have a mixed impact on VGK. On one hand, higher interest rates can be a sign of a strong economy, which could be positive for stocks. On the other hand, higher rates can also make borrowing more expensive, which could negatively impact companies and their stocks. Therefore, the impact on VGK is uncertain in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75