The European Central Bank (ECB) raised the main interest rate in the euro zone by 0.5 percentage point, thus starting an upward cycle to contain record levels of inflation. With this, the deposit rate becomes 0%, compared to -0.5% previously, and ends a cycle of negative interest.
On the other hand, data on the European economy reinforce fears of a stronger-than-expected slowdown.
The eurozone composite purchasing managers’ index (PMI), which encompasses the industrial and services sectors, fell from 52 in June to 49.4 in July, hitting a 17-month low and falling to 49.4 in July. below the 50 barrier that signals activity contraction.
Germany’s composite PMI dropped from 51.3 in June to 48 the following month, reaching the lowest level in 25 months and also below 50 points. The UK also recorded negative data, with its PMI going from 53.7 to 52.8 in July – still above the 50 barrier but the lowest level in 17 months.
Presented by Priscila Yazbek, the CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and in the world.
Also check out the other podcasts from CNN Brazil and subscribe to the channel on YouTube.
*Posted by Fabricio Julião, from CNN Brasil Business
Source: CNN Brasil
