A number of banks, including India’s Reserve Bank of India, have raised interest rates since Federal Reserve chairman Jerome Powell announced a monetary policy normalisation earlier this year
Major central banks across the globe are racing to hike interest rates and ditch post-pandemic stimulus in a bid to tame inflation. A number of banks have raised interest rates since US Federal Reserve Chairman Jerome Powell announced a monetary policy normalisation earlier this year. In January, Powell had said that the US economy was in need of tighter monetary policy and that he expected the central bank would indulge in a series of interest rate hikes this year while reducing extraordinary help that the Fed had provided during the pandemic era. "If things develop as expected, we'll be normalising policy, meaning we're going to end our asset purchases in March, meaning we'll be raising rates over the course of the year," CNBC had quoted him as saying in January this year. Let's take a look at how other central banks have taken cue from Powell's message and implemented rate hikes over the past few months.
Norway | Norges Bank of Norway kick-started the rate-hiking cycle in September 2021. Since then, the central bank has raised rates three times. It is likely to raise its 0.75 percent rate again on June 23. Norges Bank intends to hike rates seven more times by end-2023. (Image: Shutterstock)