Last week was an eventful one, to say the least. Both the Fed and the Bank of England (BoE) raised interest rates by a quarter of a percentage point. The former reckons the US banking system is sound and resilient, and remains focused on bringing inflation down to its 2% goal. The BoE, meanwhile, has a long battle ahead after new data out last week showed UK inflation unexpectedly accelerated in February for the first time in four months. That means Britain is the only G7 nation with inflation still stuck in double digits.Elsewhere, last week saw a dramatic end to Credit Suisse’s woes, with rival UBS agreeing to buy the troubled bank in a government-brokered deal that valued Credit Suisse at $3.2 billion. But as part of the rescue deal, $17 billion worth of Credit Suisse’s additional tier one (AT1) bonds, a type of bank debt designed to take losses during a crisis, was written down to zero. That sparked concern about similar debt and led to further turmoil in the European banking sector at the start of last week, leaving the sector’s valuation near levels last seen during major crises. Finally, liquidity is deteriorating in the world’s biggest and most important bond market, and that has big implications for the global financial system. Find out more in this week’s review.