Central Banks of the Group of Ten Change Their Policy - But the Federal Reserve Remains Steady 🏦
It is clear that global monetary policy is undergoing a shift, as interest rate cuts have returned to the forefront.
🔹 Switzerland has become the first country in the Group of Ten to return to a zero interest rate, cutting by 25 basis points this week.
🔹 Japan has maintained its interest rate at 0.50%, the highest level since 2008.
🔹 The Bank of England kept the interest rate at 4.25%, following the cut in May.
🔹 Norway surprised the markets by also reducing its rate to 4.25%.
🔹 And what about the Federal Reserve? The interest rate remains steady at 4.38%, marking its fourth consecutive pause.
This divergence is critically important - while other central banks are moving towards easing monetary policy, the Federal Reserve remains the most hawkish in the Group of Ten.
💡 What this means for the markets:
Global liquidity conditions are improving, but the strength of the dollar may persist as long as the Federal Reserve remains hawkish. Risky assets may rise elsewhere, but watch out for price volatility.
📊 Data source: @KobeissiLetter | Chart: Augur Infinity