Fed hike interest rates by 0.25%
The Fed hiked interest rates by 0.25%, as expected, and signalled the potential for 6 more rated rises in 2022. Fed Chair Jerome Powell commented “The American economy is very strong and well positioned to handle tighter monetary policy”. The Dollar weakened slightly overnight as risk sentiment dominated pricing concerns.
Today we have the Bank of England meeting. With no Monetary Policy Report or press conference, the focus of the BoE meeting will be the actual policy decision, the vote-count and how the Bank views the trade-off between growth and inflation concerns in light of the Ukraine war. Market consensus expects a 25bp hike to 0.75%, and also the third rate rise on the bounce.