Interest rates
Knot says financial stability risks are growing
FSB chair says emerging economies are particularly vulnerable as financial conditions tighten
Bank of Korea lifts key rate by half a point to fight inflation
Central bank also warns of high downside risks to the economy
New Zealand’s central bank delivers third straight 50bp hike
Analysts predict RBNZ will start slowing down the pace of rate hikes from October
Rising inflation still stalks major Latin American economies
Tighter monetary policy in Brazil, Chile and Mexico is failing to bring inflation down
Bank Indonesia may raise interest rates this quarter, says governor
Central bank’s cautious approach to tightening contrasts with global trend
Bank of Uganda raises rates 100bp at unscheduled meeting
Move is second increase in as many months as governor’s post remains unfilled
Asian central banks deploy FX reserves to prop up currencies
Analysts remain confident in Asia’s financial stability, but recession risks are building
Bank Negara Malaysia raises policy rate by 25bp
BNM says it will ensure monetary policy remains accommodative to support economic growth
Bank of Israel orders biggest rate rise since 2011
Central bank continues “monetary contraction” as Israel faces fifth election since 2019
RBA raises interest rate by 50bp
Move marks a total of 125bp of increases since May
China and Hong Kong to launch derivatives trading link
HKMA chief says Swap Connect scheme will allow global investors to manage interest rate risks from bond investments on the mainland
Bangladesh Bank orders second rate hike
Central bank publishes monetary policy for 2022–23
Corridor system used by most central banks to set rates
But methods vary widely depending on policy target and tools such as quantitative easing
Guatemala hikes rates 25bp for second consecutive month
Board blames global commodity prices, as inflation breached target range in May
Colombia announces largest-ever rate increase
Central bank orders 150bp rise, while president-elect announces next finance minister
Dominican Republic orders 75bp rate rise
Core inflation still rising as central bank orders sixth rate hike in eight meetings
Bank of Jamaica continues tightening cycle
MPC adds 50bp, describing May inflation drop as mainly due to “temporary effects”
Central banks should take on more credit risk during stress – BoE paper
Research claims generous credit terms can be more efficient than cutting the risk-free interest rate
Williams also expects US to avoid recession this year
Unemployment will likely rise to 4% as growth slows due to tightening process, says NY Fed head
Hungary makes shock 185bp rate increase
Central bank responds to inflation and weak forint with largest increase since 2008
State Bank of Pakistan appeals to supreme court over interest ban
Sharia court ordered Pakistan to adopt fully Islamic banking system within five years
Zimbabwe central bank raises policy rate to 200%
Finance minister guarantees use of US dollar through 2025, while RBZ will mint gold coins
Fed’s Evans and Bullard downplay recession risks
Both presidents looking to increase the policy rate to around 3.5% by the end of the year
PBoC chief vows to keep policy accommodative
But economist expects room for China to cut interest rates further to be small