ECB President Christine Lagarde justifies raising interest rates by 50 basis points

The European Central Bank raised interest rates by 50 basis points today despite turmoil in financial markets created by the collapse of SVB last Friday.

Ms Lagarde expressed confidence in the European banking sector “and stand ready with all the tools” the ECB has that can “be switched on” if the need arises.

The rapid increase in interest rates is being used as a mechanism to curb inflation which is estimated to average 5.4% this year.