Silicon Valley Bank collapse throws up uncertainty for a European Central Bank hoping to hike rates
Publishing timestamp: 2023-03-15 05:21:27
Summary
European markets closed lower due to fallout from the collapse of Silicon Valley Bank, which caused concerns of contagion and increased regulation. Despite financial stability concerns, the ECB is expected to hike rates by another 50 basis points on Thursday to combat inflation, which remains higher than the ECB's 2% target. However, there is a lack of consensus within the ECB on the level at which its benchmark rate will peak, with divisions along the core vs. periphery line. The ECB will also reveal updated staff projections for growth and inflation on Thursday.
Sentiment: NEGATIVE
Keywords: brexit, central banking, hsbc holdings plc, business news, inflation, markets, technology,