ECB raises rates amidst market turmoil, offers support if necessary

The European Central Bank (ECB) has raised its benchmark borrowing costs to 3.0% from 2.5%, the highest level since late 2008, for the sixth consecutive time, despite recent banking sector chaos, including Credit Suisse's $54 billion lifeline from the Swiss National Bank and the collapse of Silicon Valley Bank. The ECB's decision comes as inflation is seen overshooting its 2% target through 2025, with staff now expecting inflation to average 5.3% in 2023. The central bank said it was monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability.