Despite bank tremors: key interest rate should continue to rise – economy

Central bankers have long seen themselves as machinists who only have to turn the right lever at the right moment. However, with the global financial crisis at the latest, it was no longer possible to plan monetary policy. ECB President Christine Lagarde also has to deal with unsteady times again and again, as this week with the surprising bankruptcy of the American Silicon Valley Bank. California may be a long way away, but the waves of bankruptcy have also shaken up the European financial sector in recent days. After a brief recovery, the trend continued downwards on Wednesday. Credit Suisse stock plummeted, sweeping other bank stocks and the overall market with it. The German stock barometer Dax lost almost three percent and fell below 15,000 points. Is there now a risk of a sharper economic downturn due to the stock market turbulence because the banks are now lending less money?