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Central banks announced interest rate hikes this week, in what analysts call 'Super Thursday'


This week is Super Central Bank Week, and the voices of interest rate hikes are endless. Following the US Federal Reserve (FED), on Thursday (22nd) the central banks of the United Kingdom, Switzerland and Norway raised interest rates in unison, and the cumulative rate hikes of major central banks this week reached 350 basis points (3.5%).

The Wall Street Journal, Reuters, etc. reported that central banks from Norway to South Africa held policy meetings on the 22nd, and many countries raised interest rates more than expected. ING analysts called it "Super Thursday".

The Bank of England (BOE) raised interest rates for the seventh time in a row, raising rates to 2.25%, less than the 3% rise some analysts had expected, and selling some bonds. The British central bank said that despite the economy heading for recession, it will continue to respond strongly to inflation. Sterling touched a 37-year low against the dollar in early trade before recovering to $1.13.

The Swiss National Bank (SNB) raised interest rates to 0.5%, ending negative rates since 2014 and making it the last country in Europe to emerge from negative rates. The SNB signaled that the cycle of rate hikes may be nearing an end. The Swiss franc fell 1.03% to 0.9766 to the dollar in late foreign exchange trading on the day. Meanwhile, Norges Bank raised interest rates two yards to 2.25%.
In Asia and Africa, central banks in Taiwan, Indonesia, the Philippines, Vietnam, and South Africa all raised interest rates.

Countries have raised interest rates to prevent depreciation to suppress inflation, but the appreciation of the currency is not as high as that of the US dollar.

The world's major central banks raised interest rates by 350 basis points this week, proving that policymakers are not soft on inflation. In this tightening policy cycle, the central banks of the world's top ten developed countries raised interest rates by 1,965 basis points. Japan was the only central bank to remain dovish, sticking to the ultra-low interest rate policy at its meeting on the 22nd.

The World Bank has warned that this year's rate hikes by international central banks will be unseen in 50 years, and monetary policy will continue to tighten, and the global economy may fall into recession next year.
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