Central Banks Forge Ahead with Rate Hikes Despite Banking Turmoil

The Bank of England, Swiss National Bank, and Federal Reserve have all raised interest rates despite recent banking turmoil triggered by the collapse of two US lenders. The move is part of a continued fight against inflation, with central banks insisting that the banking system remains resilient. However, investors are adjusting to more challenging economic and lending conditions ahead. The rescue of Credit Suisse has ignited broader concerns about investors' exposure to a fragile banking sector, with some Credit Suisse AT1 bondholders seeking legal advice after the decision to prioritise shareholders over bondholders.