Source: Bloomberg
Author: Craig Stirling
The governor of the central bank is increasingly worried that the inflation has not been frustrated, thus caught in a new stage of currency tightening.Prior to this, these economies had undergone at least one year of interest rate hikes.
The summer of the northern hemisphere was officially opened this week, coincided with British data showed that the price increased amazingly, and the inflation was stubborn, and the Fed Chairman Powell warned that it was likely to add two more times.
On Thursday, the Bank of England and the Norwegian central bank both accelerated the pace of tightening, raising interest rates 50 basis points and promised to further raise interest rates.Swiss officials said that even if the inflation rate is close to 2%, they are not ready to stop monetary policy actions.
In short, at the beginning of the month, the Federal Reserve, as expected to suspend interest rate hikes, has made the market expect to usher in a gaspace. By the end of the month, it has become a warning of rising prices in uniform prices.Moreover, with the rise in loan costs in the next few months, the economic prospects will be covered with shadows.
The most typical example is Türkiye.Nearly 40%of the high inflation rate eventually forced President Erdogan to start on Thursday.It may be Britain, and the price of Britain is still more than 8%year -on -year, which is difficult to disappear.
"The inflation rate is still too high, we must deal with it," British President Bailey told reporters in London, a hot wave, "We know that this is difficult, and many people who have mortgage mortgages or loans will worry aboutThe impact on them. However, if we do not raise interest rates now, it may be worse in the future. "
In the global market on Thursday, Bailey embarrassedly became the focus of attention.One day ago, the basic inflation rate announced by the British Bureau of Statistics rose to 31 years.
This data forces British decision makers to double the interest rate hike, raising the benchmark interest rate to 5%, a 15 -year high, although the market has previously expected that the possibility of 50 basis points of 50 basis points is only 40%.
Although this decision is to cope with the impact of rising domestic consumer prices in the United Kingdom, it has also become a climax of the global central bank for more than a week.This rotation began at the Federal Reserve to suspend interest rate hikes last Wednesday, but it may restart in July.
"There is still a long way to go to the process of reducing inflation to 2%," Powell told the US House of Representatives Financial Services Committee on Wednesday.
Last Thursday, the European Central Bank just announced that it would be added to the interest rate hike.Eagle decision makers then claimed that they would not stop there.
After a week, Norway also significantly raised the expectations of interest rate peaks, which means that more actions may be taken to curb the inflation of the country.Pushing prices rose.
Even if the core inflation is now even lower than the official 2%limit Switzerland, the central bank is unwilling to take any risks.Officials narrowed the interest rate hike to only 25 basis points, which is the smallest interest rate hike to date, but warned that the action was not over.
Similarly, the Turkish central bank also promises to further tighten monetary policy, but warned that in the future, measures will be adopted.
But this is not enough to impress the market. The market originally expected to raise interest rates much.Turkish lira once fell 4.3%, and the country's US dollar bonds vomited the increase in the daily rise and fell. The cost of Turkish debt defaults was jumped to 529 through credit breach of contract.
