European Central Bank raised interest rates by 50 basis points, despite financial market chaos. Read more
On Thursday morning, after days of turmoil in markets, financial investors had seen a 50 per cent chance of a smaller, 25 basis point move by the ECB. They have also dialled down expectations for future moves, forecasting the peak rate at 3.25 per cent, below the 4.1 per cent priced last week.
The key worry for the ECB is that monetary policy works via the banking system, and a full blown financial crisis would make its policy ineffective.Article content Inflation is seen averaging 5.3 per cent this year, 2.9 per cent in 2024 and 2.1 per cent in 2025, the ECB said, adding that these projections were finalized before the current turmoil.
Some economists also argued that the ECB has plenty of instruments to fight market stress, and so had not needed to sacrifice the rate move to keep financial assets buoyant.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Video: European bank stocks fall as Credit Suisse tumblesEurope's bank stocks came under pressure again on Wednesday (March 15), with Credit Suisse tumbling to a new low, as investors continued to worry about stresses within the sector following Silicon Valley Bank's collapse.
Lire la suite »
European corporate treasurers on alert over fallout from Silicon Valley Bank’s collapseGerman corporate treasurers were urged not to ‘underestimate the current situation’ amid changing developments in the global banking system
Lire la suite »
China’s central bank says it will respond to U.S. and Western ‘containment and suppression’The rare warning by the People’s Bank of China came after calls by President Xi Jinping to safeguard national security
Lire la suite »
Swiss central bank offers Credit Suisse liquidity ‘if necessary’ amid stock plunge - National | Globalnews.caCredit Suisse 'meets the capital and liquidity requirements imposed on systemically important banks.,' the Swiss financial regulator FINMA and the Swiss National Bank said.
Lire la suite »
Lebanon's Central Bank chief again charged with corruptionLebanon's Central Bank chief was again charged with corruption on Wednesday, this time after failing to show up for questioning before a European legal team visiting Beirut in a money-laundering probe linked to the governor, officials said.
Lire la suite »
Swiss central bank ready to provide financial support to Credit Suisse after stocks tankCredit Suisse shares plummet by as much as 30 per cent after the bank’s largest shareholder says it won’t increase its stake in the bank
Lire la suite »