ECB pushes ahead with 50 basis point hike
ECB, SVB•CS 사태에도 '빅스텝' 라가르드 "여지 더있어" The European Central Bank goes ahead with a planned half a percentage point rise in interest rates despite uncertainties over the recent financial turmoil. Meanwhile, the U.S. tries to reassure its people that the American banking system is safe and sound. Lee Seung-jae has more. Despite expectations that the European Central Bank would take a smaller step when raising its key interest rates due to the uncertainty surrounding Credit Suisse, and the fallout from bank failures in the U.S., it announced Thursday that it would still be making a 'big step' of 50 basis points. The decision comes as ECB President Christine Lagarde stressed the need to continue to fight inflation in the eurozone. "Inflation is projected to remain too high for too long. Therefore, the Governing Council today decided to increase the three key ECB interest rates by 50 basis points in line with our determination to ensure the timely return of inflation to our 2% medium-term target." The move by the ECB, which has been raising its rates at the fastest pace on record, will now see the 20 countries in the eurozone raise their main lending rates to 3-point-5 percent. Meanwhile, speaking to the Senate Finance Committee on Thursday, U.S. Treasury Secretary Janet Yellen says the nation’s banking system “remains sound” and Americans “can feel confident” about their deposits. "I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them. This week's actions demonstrate our resolute commitment to ensure that our financial system remains strong and that depositors' savings remain safe." Her latest remarks come amid the recent collapse of Silicon Valley Bank in California and Signature Bank in New York. Yellen also stressed that taxpayers will not bear the cost of protecting uninsured money at the two failed regional banks. Meanwhile, Credit Suisse shares rebounded sharply on Thursday,.. after announcing that it would borrow up to 54 billion U.S. Dollars from its central bank. Concerns had escalated after the Swiss lending bank's stock prices began plunging on Wednesday, prompting stock markets to fall in the U.S. and around the world. And now, San Francisco-based First Republic Bank is set to receive a 30 billion dollar loan from a group of America’s largest banks. The U.S. Treasury Department praised the support from the larger banks, saying it shows of the resilience of the banking system. Trading of First Republic Bank stocks, which was halted several times on Thursday due to volatility, ended the day up more than 10 percent on the news of the 30 billion dollar's worth of assistance. Lee Seung-jae, Arirang News. #European_Central_Bank #ECB #Christine_Lagarde #bigstep #빅스텝 #유럽중앙은행 #라가르드 #Arirang_News #아리랑뉴스 📣 Facebook : / arirangtvnews 📣 Twitter : / arirangtvnews 📣 Homepage : https://v2.arirang.com/ 2023-03-17, 09:00 (KST)
