ECB to set interest rate amid global financial uncertainty
European Central Bank (ECB) policymakers are due to meet on Thursday to set interest rates as the institution grapples with inflation and financial uncertainty.
The meeting takes place a week after the collapse of Silicon Valley Bank, in the United States, and amid the difficulties faced by Credit Suisse in Europe.
That sparked fears of global financial turmoil and led the ECB to abandon its initial plan to raise interest rates by another 50 basis points to tackle rising living costs.
An announcement is expected around 14:25 CET (1325 UTC/GMT).
Euro recovers from Credit Suisse lifeline
The euro and Swiss franc regained some lost ground on Thursday on news that Credit Suisse would borrow up to CHF50 billion (€50.7 billion, $54 billion) from the country’s central bank.
The euro gained 0.4% after losing 1.4% the previous day – the biggest change in six months.
Some analysts saw this as a sign that the market’s mood was improving a bit, hours before the ECB interest rate announcement.
“Credit Suisse now has the influence of the Swiss National Bank behind its back, which is a central bank that doesn’t play around in times of crisis,” Matt Simpson, senior market analyst at forex trading platform City Index, told the news agency Reuters news.
“So ultimately I think that’s good for market sentiment.”
zc/rc (Reuters, AFP)
Source: DW
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