Silicon Valley Bank collapse ‘could force central banks to stop interest rate rises’

Economists say Silicon Valley Bank’s collapse will probably force banks to act more cautiously when issuing loans. Photograph: Dado Ruvić/Reuters

The world’s most powerful central banks may stop raising interest rates after the Silicon Valley Bank crisis, economists have said, amid growing signs of financial stress linked to rapid increases in borrowing costs over the past year.

Analysts said the US Federal Reserve would probably leave interest rates on hold at its decision next week, as the meltdown at the California-based technology lender rippled through global financial markets.