The European Central Bank (ECB) followed through with its promise to raise interest rates by 50 basis points on Thursday, despite the recent market turmoil caused by the collapse of Silicon Valley Bank in the United States. The central bank has been rapidly increasing rates to control inflation, with the deposit rate now standing at 3%, the highest level since late 2008. The ECB did not make any commitments for future rate hikes but emphasised the importance of a data-dependent approach. Markets have lowered their bets on the peak in the rate-hike cycle to 3.2% from 4.2% a week ago. Although the ECB is concerned about the financial stability of the banking system, it is primarily focused on curbing inflation, which is projected to be above its 2% target through 2025. Markets had a rather muted response to the rate change, with the focus still being on the stability of the banking sector.