The European Central Bank (ECB) raised interest rates by a further 0.5% on Thursday as promised, ignoring financial market chaos and calls by investors to dial back policy tightening at least until sentiment stabilises.
The ECB has been raising rates at its fastest pace on record to curb inflation, but a rout in global markets since the collapse of Silicon Valley Bank (SVB) in the United States last week had threatened to upend those plans at the last moment.
In line with its often-repeated guidance, the central bank for the 20 countries that share the euro lifted its deposit rate to 3%, the highest level since late 2008, as inflation is seen overshooting its 2% target through 2025.
The ECB offered no commitments for the future, despite previous calls by a long list of policymakers for more big moves in the fight against inflation.
"The elevated level of uncertainty reinforces the importance of a data-dependent approach to the Governing Council’s policy rate decisions," the ECB said.
