The European Central Bank raises rates by a hawkish 0.5% despite banking turmoil

This marks the sixth interest rate hike to drive down inflation since last summer.

Christine Lagarde, president of the European Central Bank (ECB). Pic: AK/JM

The European Central Bank (ECB) remained hawkish today as it ploughed ahead with a 0.5% interest rate hike despite fears of a banking crisis fuelled further by the meltdown at Credit Suisse.

However, shares in Credit Suisse, which is one of Europe’s largest lenders, surged 20% on Thursday after the bank worth around €8bn was given a lifeline by the Swiss central bank and borrowed 50bn Swiss Francs (€51bn) from the regulator ahead of the latest interest rate hike.