The European Central Bank (ECB) raised interest rates by 50 bps on Thursday. Less than twelve hours after Credit Suisse was given a 50 billion Swiss franc (53.94 billion dollar) lifeline.

Once the SNB, the ECB’s counterpart, intervened to provide support, Credit Suisse’s shares rose by almost 20% throughout the majority of the day.

The Fed raising interest rates by 25 bps in March is still widely anticipat in the money markets. Although European Central Bank President Christine Lagarde referred to Thursday’s rate increase.

The European Central Bank and Federal Reseve are both now attempting to strike a workable compromise between price stability & financial stability.

When the ECB raise was announced, Gerlach remarked. “Whenever you do anything that substantial, you know there is a danger waiting someplace in the financial system.”

Asian stock prices dropped overnight by about 1 percent. Although it was more a catching-up move and lacked the excitement seen in Europe the day before.