2023-06-22 15:42:11
Central banks of European countries raised interest rates one following another on the 22nd.
The UK raised its benchmark interest rate by 0.5 percentage point, bringing interest rates to 5% per annum, the highest level in 15 years.
Andrew Bailey, governor of the Bank of England, the central bank of England, warned of further rate hikes shortly following the monetary policy meeting that day, saying, “We are committed to getting inflation back to our 2% target, and we will take the necessary decisions to achieve that.”
Initially, the financial market strongly predicted a 0.25%p interest rate hike at this monetary policy meeting.
However, it is analyzed that the ‘big step’ was decided when the consumer price increase rate was higher than expected the previous day.
The UK’s consumer price index (CPI) for May, released on the 21st, was 8.7%, maintaining the same level as April.
It was higher than the expert forecast (8.4%), and recorded a higher-than-expected inflation rate for the fourth month.
In the midst of this, Switzerland and Norway raised their key rates by 0.25%p and 0.5%p, respectively.
Turkey raised its benchmark interest rate by 6.5 percentage points to 15%.
In the midst of this, Jerome Powell, chairman of the US Federal Reserve System (Fed), attended a hearing on the US House Financial Services Committee on the 21st and predicted an additional rate hike.
VOA News
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