Inflation knows no borders
Inflation hits American households But Americans are not alone. Rising prices are taking a toll on governments around the world, and central banks are scrambling to cover it up. Policy makers are implementing aggressive rate hikes Monetary policy tightening in jurisdictions not seen in decades.
The Bank of England announced a rate hike of 0.75%. Thursday, raising rates to 3% from 2.25%. This was his biggest interest rate hike since 1989, A ‘Very Challenging’ Outlook for the Economy, The economy posted inflation of 10.1% in September. The economy is already in a recession that could last two years.
The European Central Bank raised interest rates by the same amount to 1.5% at the end of October. Highest level since 2009. The ECB has not hiked interest rates aggressively since the eurozone’s inception in 1999. Inflation accelerated to 10.7% across economic blocs in October.
The United States, which launched a series of rate hikes in March this year, has gotten off to a faster start than its trading partners in attempting to combat rampant inflation. While starting slowly with a 25 basis point gain, For the first time in two years, the Fed announced four consecutive 75 basis point rate hikes on Wednesday.
Inflation in the US is slowly declining since peaking at 9.1% in June, that Remains at 8.2%So far the US has managed to avoid a recession Economy expanding in the third quarter After two consecutive falls.