Big ECB hike called into doubt by Credit Suisse

The ECB’s announcement may now hinge on how markets react to Credit Suisse tapping €50bn From the Swiss National Bank

Policymakers will also consider fresh quarterly economic forecasts for the eurozone that are set to show headline inflation receding faster than previously seen — even as underlying price gains prove stickier. (AP Photo/Michael Probst, file)

The European Central Bank’s plan to raise interest rates by another half-point on Thursday has been thrown into question by banking turmoil that began in the US but has since landed with a jolt much closer to home.

The crisis at Credit Suisse Group AG that followed the collapse of Silicon Valley Bank has left analysts less certain that the intended hike will in fact materialize. Investors, too, have pared bets to nearer the 25 basis points that Bloomberg Economics and Deutsche Bank now predict.