Multiple central banks across the globe implemented interest rate hikes this past week as policymakers look to advance the fight against inflation amid the ongoing banking crisis.
The Bank of England implemented its 11th consecutive interest rate hike on Thursday, following the example of the U.S. Federal Reserve and the Swiss National Bank.
While concerns have emerged over economic stability following the collapse of Silicon Valley Bank and the rescue takeover of the 167-year-old Credit Suisse, the Bank of England reassured investors in a note that the United Kingdom’s banking system remains stable.
“The (Monetary policy committee) will continue to monitor closely any effect on the credit conditions faced by households and businesses, and hence the impact on the macroeconomic and inflation outlook,” the BoE continued.
An array of major banking stocks declined following the latest central bank decisions, with London-headquartered HSBC declining 2.5%, Deutsche Bank falling 2.1%, and Commerzbank losing 3.2%.
Earlier on Thursday, the Swiss National bank raised interest rates by 50 basis points. This came after Credit Suisse was acquired for 260 billion Swiss francs ($280 billion) by UBS in a state-backed takeover.