The European Central Bank Raises Rates Half a Point Amid Uncertainty

17 Mar 2023

The European Central Bank pushed ahead with a half-point increase in interest rates on Thursday, sticking to its previously stated inflation-fighting plan, but said the recent turmoil in financial markets had made the path ahead less certain.

Over the past few days, since the collapse of three midsize banks in the United States, investors have been gripped by worries about other banks, including the big Swiss lender Credit Suisse, and about the sector’s ability to withstand higher interest rates. The European Central Bank was the first major central bank to set monetary policy since the volatility began late last week.