ECB raises rates despite banking turmoil, AUD/USD sees corrective highs

The European Central Bank (ECB) has raised interest rates by half a percentage point to combat high inflation of 8.5%, despite predictions it might dial back due to the recent US bank collapses and Credit Suisse's troubles. ECB President Christine Lagarde called the banking sector in the 20 countries using the euro currency "resilient," with strong financial reserves and plenty of ready cash. The ECB is "fully equipped" to provide additional support to the banking system if necessary. The ECB's rate for lending to banks was raised to 3.5%, and the rate it pays on deposits it takes from banks was lifted to 3%.