BOJ joins a rate-hike party that other big central banks have left
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A man walks past the Bank of Japan building in Tokyo, Japan March 18, 2024. REUTERS/Kim Kyung-Hoon
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By Naomi Rovnick and Alun John
LONDON (Reuters) – Global interest rates are in flux. The Bank of Japan, a holdout dove as central banks across the developed world raised borrowing costs from late 2021, finally called time on its easy money era on Tuesday.
Most other big central banks, in contrast, are on the brink of victory in their fight against inflation.
Rate setters in the United States, Britain, Switzerland and Norway meet this week and may at least offer clues about when they will cut rates.
Here’s how big central banks stand.
1) UNITED STATES –
Markets have pared back Federal Reserve rate cut bets given hawkish central bank speak and hotter than expected inflation.
Traders price in roughly 75 basis points (bps) of U.S. rate cuts in 2024 versus 150 bps at the start of the year, with a first move seen as most likely in June.
The Fed, which meets on March 19-20, has held rates steady at 5.25% to 5.5% since July 2023.
