Major central banks return to the fight against inflation in February – #Major #central #banks #return #fight #inflation #February
LONDON, March 2 (Reuters) – Major central banks continued their quest to raise interest rates in February after a tepid start that proved price pressures were stickier than markets and many policymakers expected.
Central banks in February 10 The most-traded currency has seen six rate hikes in six sessions. Politicians of Australia, Sweden, New Zealand and Britain are the main ones credit to raise its rates by a total of 250 basis points (bps). USA Federal Reserve and Europe They joined the Central Bank. All banks expected more growth.
January The month saw only one rate hike of 25 bps by Canada across the three meetings of the G10 central banks.
“Stronger than expected growth and more sustainable than expected inflation The combination of indicators has led to a sharp shift in the market narrative over the past month from a ‘softer downturn’ and towards a ‘prolonged tightening period’ by major central banks. Nikolaos Panigirtzoglou at JPMorgan.
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Emerging market countries raise (+) or lower (-) policy rates.
The end of some of the best economies in the world inflation and labour data surprised markets and prompted analysts to raise expectations about where Fed and ECB interest rates will peak. Markets are already pricing in ECB rates rising to just above 4% later in the year, while Fed rates look as high as 5.5%-5.75%.
In emerging markets, interest rate growth momentum showed some evidence of slowing. Of the 18 central banks in Reuters’ sample of emerging economies, 13 met to decide on rate changes, but only four increased by just 175 bps — Mexico, Israel, the Philippines and India. Turkey slowed by 50 bps after the deadly earthquake.
February action, six of the 18 central banks january It follows January, when it provided a total increase of 225 bps, while the other six came together but decided to keep rates unchanged.
Gabriel Sterne of Oxford Economics, “This (inflation) shock has come for everyone, but may fade to different degrees,” he said.
“The disinflation trend now looks surprisingly good in Asia, for example, where services inflation has already turned a corner.”
Emerging market countries cut policy rates (+) or reduce (-) by Karin Strohecker and Vincent Flasseur reportadded by Marc Jones report Edited by Nick Zieminski
Our standards: Thomson Reuters Trust Principles.
2023-03-02 21:21:58
Source – reuters
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