RBI in focus as central banks up rates

NEW DELHI: All eyes are on the RBI’s rate action next week after central banks from Manila to Oslo announced hikes on Thursday. The recent hikes came hours after the US Federal Reserve again raised rates by 75 basis points (100bps = 1 percentage point).
Turkey went for a surprise rate cut despite 80% inflation, while Brazil held its benchmark at 13.75% after 12 straight hikes and the Bank of Japan stuck with its ultra-low rates. Thursday’s Fed move, however, sparked off a spate of action as central banks in the UK, Switzerland, South Africa and Indonesia stepped in to stamp out inflation.
The Swiss National Bank exited the negative interest rate era after over seven years as it increased rates by three-fourths of a percentage point. The increase to 0.5%, from minus 0.25%, followed a 50bps hike in June, SNB’s first rate hike in 15 years.
Similarly, the Bank of England voted to…

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