The Impact of Interest Rate Rises on the Financial Markets

I think what we have seen with Silicon Valley Bank is something that was obviously driven by very peculiar characteristics of that bank. And the general feeling is that this particular phase is over. What has not disappeared is that we are still in a sequence of interest rate rises. The inflation monster has not been killed yet, we don't know. So there might be other pockets of risk that other territories of risk vulnerabilities that would be revealed by these rising interest rates. But I think in the US and possibly elsewhere as well, we will see the sequence of interest Rate rises create or uncover new vulnerabilities. Will that result in actual instability? That of course is a key question from a perspective of the financial markets