The European Central Bank increased interest rates by a half point, sticking to the plans set out last month even after concern about the health of banks riled markets this week.
ECB President Christine Lagarde and her colleagues lifted the main refinancing rate to 3.5% from the current 3%. It’s the second consecutive half-point move, and it’s what they said they intended to do at the last decision on Feb. 2.
The ECB is the first major central bank to make an interest-rate decision since the turmoil triggered by the collapse of Silicon Valley Bank. The U.S. Federal Reserve is due to make its next decision on March 22, and the Bank of England the day after.