Major central banks on tightening path amid energy price shock
Major central banks are on a tightening path, with the Federal Reserve recalibrating its policy to a more restrictive stance on Wednesday, even as traders continue to price in a more aggressive policy...
Central banks across the G10 are on a tightening path due to an energy price shock, with the Federal Reserve recalibrating its policy to a more restrictive stance on Wednesday. Other central banks, such as the Reserve Bank of Australia, have increased interest rates multiple times this year, with the door remaining open for another hike.
Norway's Norges Bank left rates unchanged at 4.25% but noted a slowdown in the economy and a decrease in inflation expectations. The Bank of England maintained its rates steady at 3.75%, while signaling the need for tighter policy due to Middle Eastern conflict. The Federal Reserve raised rates and indicated more hikes, easing concerns about its independence.
New Zealand's RBNZ increased rates for the second consecutive meeting, hinting at further tightening due to economic risks. The European Central Bank raised rates for the second time this year, projecting at least one more hike by year-end. The Bank of Canada left rates on hold but signaled possible increases if inflation remains high.
Japan's Bank of Japan is expected to hike rates at a meeting later this week, with economists anticipating further rate increases later in 2027. Switzerland's SNB is expected to keep its key rate at 0%, despite rising consumer prices and strong economic growth.
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- Major central banks on tightening path amid energy price shock channelnewsasia.com
