The new inflation forecasts for the next two years will be lower than in December but still put price growth well above the central bank's 2% target in 2024 and slightly above it in 2025. The source added that formal proposals for the meeting have not yet been distributed but policymakers have seen the new quarterly projections. Investors had begun to doubt the ECB's commitment to another big rate hike this week after the collapse of Silicon Valley Bank (SVB) in the United States sent ripples through global financial markets.īut the source close to the Governing Council said the ECB was unlikely to ditch its plan to raise rates by 50 basis points on March 16 - announced at its last meeting and repeated several times by President Christine Lagarde and her colleagues - because that would damage its credibility. , 12:59:23 PM IST ECB likely to stick to big rate hike despite banking turmoilĮuropean Central Bank policymakers are still leaning towards a half-percentage-point rate hike on Thursday, despite turmoil in the banking sector, as they expect inflation will remain too high in coming years, a source told Reuters.
With concerns about the possibility of more hidden trouble in the banking system, investors were quick to sell bank stocks. The stock has suffered a long, sustained decline: In 2007, the bank's shares traded at more than 80 francs ($86.71) each. At its lowest, the price was down more than 85% from February 2021. That fanned new doubts about the bank’s ability to weather the storm.Ĭredit Suisse stock dropped about 30%, to about 1.6 Swiss francs ($1.73), before clawing back to a 24% loss at 1.70 francs ($1.83) in late afternoon trading on the SIX stock exchange. We are all hands on deck, so that’s not a topic whatsoever."Ī day earlier, Credit Suisse reported that managers had identified “material weaknesses" in the bank’s internal controls on financial reporting as of the end of last year. We have strong capital ratios, very strong balance sheet. When asked if he would rule out government assistance in the future, he said: “That’s not a topic. Speaking Wednesday at a financial conference in the Saudi capital of Riyadh, Credit Suisse Chairman Axel Lehmann defended the bank, saying, “We already took the medicine" to reduce risks. That fanned new fears about the health of financial institutions following the recent collapse of Silicon Valley Bank and Signature Bank in the U.S. The turmoil prompted an automatic pause in trading of Credit Suisse shares on the Swiss market and sent shares of other European banks tumbling, some by double digits. , 11:52:59 PM IST Bank fears spread to Europe, drag down shares of big lendersįears about the world banking system spread to Europe on Wednesday as shares in the globally connected Swiss bank Credit Suisse plunged and dragged down other major European lenders in the wake of bank failures in the United States.Īt one point, Credit Suisse shares lost more than a quarter of their value, hitting a record low after the bank's biggest shareholder - the Saudi National Bank - told news outlets that it would not put more money into the Swiss lender, which was beset by problems long before the U.S.
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