Central banks raise rates again as Fed drives global inflation fight

Rates raised from Britain to Indonesia after Fed's Wednesday move; investors price in bigger hikes from ECB; Japan steps in as yen plummets; emerging market currencies under pressure

US federal reserve

A host of central banks from across the world raised interest rates again on Thursday, following the U.S. Federal Reserve in a global fight against inflation that is sending shockwaves through financial markets and the economy.
Japan, the outlier among major developed economies, kept interest rates steady on Thursday only to be punished as traders pushed the yen to a record low against the dollar - prompting the first intervention by Japanese authorities to support the currency since 1998.
The Fed set the pace on Wednesday with a 0.75% rate hike, its fifth increase since March, and a half dozen central banks from Indonesia to Norway followed suit with rises of similar or identical size within hours, often issuing guidance

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First Published: Sep 22 2022 | 6:49 PM IST

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