ECB hike contains 'dovish shift' as bank instability fears remain

The European Central Bank hiked interest rates by 50 basis points to 3% today (16 March), despite fears that a crisis in Credit Suisse could spread throughout the rest of the financial sector. Markets reacted passively to the decision, with the Eurostoxx 600 remaining flat following the opening bump the index received following the news that Credit Suisse would receive a $54bn lifeline from Swiss National Bank, which has since declined throughout the day. The Eurostoxx's banking index is similarly calm, rising 0.7% today. Katharine Neiss, chief European economist at PGIM Fixed Inco...