Interest Rates

Latest major ECB interest rate hike called into doubt by banking turmoil

The sector has been rocked by the collapse of Silicon Valley Bank and the crisis at Credit Suisse

The ECB all but promised a 0.5 per cent advance in the deposit rate to 3 per cent this month. Picture: Getty

The European Central Bank’s (ECB) plan to raise interest rates by another half-point on Thursday has been thrown into question by banking turmoil that began in the US but has since landed with a jolt much closer to home.

The crisis at Credit Suisse that followed the collapse of Silicon Valley Bank has left analysts less certain that the intended hike will in fact materialize. Investors, too, have pared bets to nearer the 25 basis ...