March Sees Continued Combat Against Inflation by Global entral Banks.
Most developed and emerging market central banks continued to raise interest rates at a strong clip in March, albeit the magnitude of the increases slowed slightly as the turbulence in the banking industry dimmed the outlook for global growth.
Over the course of eight meetings in March, the central banks in charge of the ten most popular currencies raised interest rates six times. Together with the U.S. Federal Reserve and the European Central Bank, decision-makers in Australia, Switzerland, Norway, and Britain increased key lending rates by a combined 200 basis points (bps).
This comes after the G10 central banks had six meetings in February and raised interest rates by a total of 250 basis points. Interest rates in emerging markets Interest rates in emerging markets In March was a roller coaster for markets and policy makers, with rising expectations that the U.S. Federal Reserve’s rate could peak at 6%, before a collapse of a number of U.S. banks and the Credit Suisse crunch rocked global markets, raised concerns over financial stability and clouded growth prospects.