ECB to look for signs of stress but banking crisis unlikely

The European Central Bank will watch for signs of stress in bank lending from the ongoing financial turmoil but a full-blown crisis is unlikely for now, the ECB's top brass said on Wednesday, Report informs, citing Reuters.

Investors are pondering whether the ECB will be able to continue raising rates to fight inflation given the turmoil in the banking sector that has seen two U.S. lenders go under and Swiss giant Credit Suisse need a last-minute rescue.

The ECB's chief economist Philip Lane said market jitters may turn out to be "a non-event" for monetary policy, or could affect it at the margins, but the odds on a crisis that completely rewrites the outlook remained long.