The European Central Bank on Thursday lifted its key interest rate by an unprecedented 75 basis points and signalled further hikes, the latest major central bank to prioritise taming inflation before a weakening economy.
Canada and Australia also lifted rates this week. Japan, which is yet to lift rates in this cycle, is the holdout dove among the 10 big developed economies.
In total, the following central banks have so far raised rates in this cycle by a combined 1,615 basis points.
Traders anticipate an 84% chance the U.S. Federal Reserve will deliver a third consecutive 75 basis-point (bps) rate rise at its next meeting on Sept. 20-21.
Fed chief Jerome Powell has made clear that taming inflation is the central bank's priority even if that comes at the expense of weaker economic growth.
