current position:Home>Following the Fed, seven central banks in Europe, Asia and Africa have taken action in less than a day, and the world has set off another frenzy of interest rate hikes

Following the Fed, seven central banks in Europe, Asia and Africa have taken action in less than a day, and the world has set off another frenzy of interest rate hikes

2022-09-23 08:21:00Chinese Industry Information Station

The Bank of England raised interest rates by 50 basis points as scheduled, lowered the peak inflation expectations and economic growth, and actively quantitative tightening from next month

As of Thursday, the Bank of England raised interest rates seven times in a row since December last year, and Thursday was the second straight hike of 50 basis points.The Bank of England also announced on the same day that it will actively sell British government bonds from October 3, and actively quantitative tightening (QT).

The Bank of England warns that energy price guarantees could reduce the risk of persistent domestic price and wage pressures, but the risks remain high, with UK inflation expected to exceed 10% in the coming months, and said the central bank will, if necessaryA robust response to more persistent inflationary pressures.

The Bank of England also lowered its peak inflation forecast and economic growth outlook, reducing the expected peak inflation from more than 13% to less than 11%. It is expected that the UK GDP growth rate in the third quarter of this year will decrease from the expected increase of 0.4% in August.down 0.1%.That means the economy will contract for the second straight quarter, meeting the definition of a technical recession.

The Swiss National Bank’s 75bps rate hike is still below traders’ expectations for the Swiss franc to drop more than 2% intraday, the biggest drop since 2015

Like the Fed, the Swiss National Bank on Thursday also decided to raise interest rates by 75 basis points, raising the policy rate from -0.25% to 0.5%, the highest since December 2008.So far, Switzerland, the last country in Europe to implement negative interest rates, has also ended its eight-year negative interest rate policy.

In its latest economic forecast released on Thursday, the Swiss National Bank lowered its economic growth forecast for this year to around 2% from around 2.5% in June.Inflation is currently projected to average 3% in 2022, slowing to 2.4% next year and 1.7% in 2024.

Swiss National Bank President Jordan predicts that the domestic inflation rate will remain at a high level for a period of time.Alleviate inflationary pressures.

The Wall Street news article mentioned that the Swiss interest rate hike this time was less than 100 basis points expected by traders. Therefore, the Swiss franc, which had hit a seven-year high earlier on Thursday, fell by more than 2 against the euro after the central bank raised interest rates.%, the biggest intraday drop since 2015.Some analysts believe that the decline in the Swiss franc is only temporary.Given the Swiss franc's safe-haven status, it is expected to benefit from a more bleak economic backdrop.

Norway's central bank hikes rates by 50 basis points, expects peak rate cut to suggest tightening is coming to an end

The Norges Bank announced a 50 basis point rate hike, in line with market expectations, raising the policy rate to 2.25%, the highest level since 2011, and said it may raise interest rates again in November.

In a post-meeting statement, Norges Bank officials hinted that monetary tightening may be nearing an end, saying "monetary policy is starting to exert a tightening effect on the Norwegian economy, which may imply a more gradual approach to setting policy rates going forward."

The Norges Bank now expects the policy rate to hit 3% in the coming months and then stay close to that level before peaking at 3.11% in the third quarter of next year, down from its previous forecast of a peak of 3.5% next year.

Some analysts believe that the new interest rate forecast is more dovish than before. Norges Bank will raise interest rates to 3.25% by next summer. If the inflation rate continues to be higher than the central bank expected, the central bank may have to raise interest rates by 20%.higher.

Three Southeast Asian central banks raise rates, Vietnam adds 100 basis points, first rate hike in two years

The central banks of the three Southeast Asian countries all raised interest rates on Thursday, with the central banks of Indonesia and the Philippines each raising their policy rates by 50 basis points, and the central bank of Vietnam raising two major policy rates by 100 basis points, the latest rate for the COVID-19 outbreak in September 2020.The first rate hike since the outbreak.

The media pointed out that the Philippine central bank's rate hike was 25 basis points higher than what the central bank's governor had previously said needed, while Indonesia's rate hike was higher than economists expected.Also add 25 basis points.

The Central Bank of Vietnam responded to the call of Vietnamese Prime Minister Pham Minh Trinh.The announcement by the central bank of Vietnam comes hours after Pham Minh Trung urged the central bank to take interest rate measures to support the currency.Vietnam's biggest challenge now is keeping inflation under control, Bank of Vietnam Governor Nguyen Thi Hung said earlier on Thursday.

The media pointed out that as of Thursday, the exchange rate of the Vietnamese dong against the US dollar fell for nine consecutive days, falling to 23,712 during the session, hitting a new low since records began in at least 1993.The reference exchange rate of the Vietnamese dong against the U.S. dollar announced by the Bank of Vietnam on Thursday was 1:23,316, the lowest level since at least 2005.

South Africa has raised interest rates by 75 basis points twice in a row. This time some policymakers support an increase of 100 basis points

South Africa's central bank decided on Thursday to raise interest rates by 75 basis points, in line with market expectations. This is the central bank's second consecutive rate hike of 75 basis points. So far, the policy rate has returned to the level before the outbreak of the new crown epidemic in January 2020.

It is worth mentioning that two of the five members of the Monetary Policy Committee of the South African Central Bank voted to raise interest rates by 100 basis points on Thursday.

South Africa's central bank governor Lesetja Kganyago said after the meeting that there are still upside risks to the inflation outlook after assessment.While global producer prices and food inflation have moderated, the ongoing Russian-Ukrainian conflict has a negative impact on global prices.Oil prices could rise further on tight energy markets.Electricity and other controlled prices also continue to present significant medium-term risks.

The South African central bank is under pressure to continue raising interest rates sharply while other central banks, especially the Federal Reserve, keep raising interest rates, the media said.

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