Investment • 685 • 3
The RBI increased interest rates by 35 bps today, the fifth time in a row.
"Will rise even more!" fund managers have been forewarned by S&P Global Ratings. There will be a big increase in borrowing costs worldwide in November. The central regulators of the top 6 traded currencies are imposing a significant 350 bps increase. In November, interest rates were raised by the US Federal Reserve, the BoE, the Australian Reserve Bank, and the Norway Bank.
The central banks of Sweden and New Zealand support the same tendency to control inflation, in addition to the other four banks.Irony is only Japan welcome inflation for growth!
Asia is under pressure, as evidenced by the past month's rate increases in South Korea, Malaysia, and Indonesia. In the previous month, rate-setting sessions were skipped by the ECB, the Bank of Canada, Japan, and the Swiss.
The rate adjustments force the G10 central banks to raise interest rates by 2400 basis points. However, there is a weak indication that the Russia-Ukraine conflict should be avoided, giving the world economy some optimism. The US is becoming more optimistic about a slight decline in inflation, which could change the Federal decision made in 2013 and 2014.
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