Major economies around the world shift back to tightening stance following the U.S. Fed's rate hikes
Signals of Fed rate hikes have made the global central banks' shift toward tightening clear again. From the Bank of Korea's possible rate hike in November, quickly check the market trends.
As the U.S. Federal Reserve (Fed) raised its benchmark interest rate by 0.25 percentage points on the 16th (local time), the trend among major central banks of shifting their monetary policy back toward tightening has become clear. The European Central Bank (ECB) has already raised rates, and the Bank of Japan is also being discussed as a possible candidate for additional hikes.
This Fed decision marks the first interest rate increase in 3 years and 2 months. The Fed judged that inflation is still above its target level and raised its outlook for the benchmark rate, suggesting the possibility of another hike within this year.
The Bank of Korea is also facing speculation over an additional hike within the year. Analysts say that rising international oil prices, higher U.S. Treasury yields, inflationary pressure from increased investment in artificial intelligence, and the weakening won along with a widening KoreaU.S. interest rate gap are all weighing on domestic monetary policy. The market is paying close attention to the possibility of a rate hike in November.