{"id":354,"date":"2023-03-17T05:02:04","date_gmt":"2023-03-17T10:02:04","guid":{"rendered":"https:\/\/enjoyingthisjourney.com\/ecb-raises-interest-rates-despite-financial-turmoil-credit-suisse-shares-plummet\/"},"modified":"2023-03-17T05:02:04","modified_gmt":"2023-03-17T10:02:04","slug":"ecb-raises-interest-rates-despite-financial-turmoil-credit-suisse-shares-plummet","status":"publish","type":"post","link":"https:\/\/enjoyingthisjourney.com\/ecb-raises-interest-rates-despite-financial-turmoil-credit-suisse-shares-plummet\/","title":{"rendered":"ECB Raises Interest Rates Despite Financial Turmoil, Credit Suisse Shares Plummet"},"content":{"rendered":"
On Thursday, March 16, 2023, the European Central Bank held its monetary policy meeting and decided to go ahead with the half a percentage point rise in its base interest rate despite the financial turmoil of the past week.[0]<\/a><\/sup> This decision has been met with mixed reactions as the market participants were expecting a rate hike, however, they think that the future hikes are now off the table.[1]<\/a><\/sup> <\/p>\n The news of the rate hike sent Credit Suisse\u2019s shares into free fall on Wednesday, with the stock falling by more than 30% before closing down 24%.[2]<\/a><\/sup> This followed the announcement that Saudi National Bank, Credit Suisse's largest investor, would not provide the Swiss bank with additional financial assistance.[3]<\/a><\/sup> In response to the news, Credit Suisse will now borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank. <\/p>\n The news has sparked concerns of a global banking crisis and has caused panic in the markets.[3]<\/a><\/sup> Al Khudairy, the head of Credit Suisse\u2019s investment bank, has urged for calm, saying that the panic is \u201ccompletely unwarranted\u201d.[2]<\/a><\/sup> <\/p>\n Overall, the European Central Bank\u2019s decision to raise its interest rate has caused a stir in the markets, and investors are now watching the situation closely.<\/p>\n 0. <\/span>“Wall Street banks organise a bailout operation as financial crisis deepens” WSWS, 17 Mar. 2023, https:\/\/www.wsws.org\/en\/articles\/2023\/03\/17\/obwo-m17.html<\/a><\/p>\n 1. <\/span>“How Credit Suisse just unleashed a nightmare decision for the Fed and the ECB” Yahoo News, 16 Mar. 2023, https:\/\/news.yahoo.com\/how-credit-suisse-just-unleashed-a-nightmare-decision-for-the-fed-and-the-ecb-093016411.html<\/a><\/p>\n 2. <\/span>“Credit Suisse was so fragile that a blunt answer in a TV interview was enough to send it to ask the Swiss central bank for $54 billion” Fortune, 16 Mar. 2023, https:\/\/fortune.com\/2023\/03\/16\/credit-suisse-shares-swiss-national-bank-bonds\/<\/a><\/p>\n