Europe’s central bank backs big rate hike despite bank chaos

Dark clouds drift over the city as a man runs over a bridge near the European Central Bank in Frankfurt, Germany, Friday, March 10, 2023. (AP Photo/Michael Probst)

The European Central Bank has carried through with a large interest rate increase, brushing aside predictions it might dial back as US bank collapses and troubles at Credit Suisse feed fears about the impact of higher rates on the global banking system.

The ECB hiked rates by half a percentage point on Thursday, underlining its determination to fight high inflation.