This article is published in collaboration with Statista
by Martin Armstrong
The Bank of England announced today that it is continuing its now 13-long streak of increasing the interest rate, raising by 0.50 points to 5.00%. This follows the suit of the European Central Bank, which declared another rise last week, moving from 3.75% to 4.00%. The ECB's decision is the latest in a string of increases following its historical rate hike last July, which ended its six year adherence to a zero-interest policy. Despite the Fed's call to pause its rate hikes in June, the U.S. still has the highest rate of these advanced Western economies, sitting at an upper limit of 5.25%.
The Japanese Central Bank, which started applying a zero-interest strategy even earlier during the 1990s asset bubble, has stuck with the policy even more fervently than the ECB had done, even switching to a negative interest policy by 2016 as the country battled chronic economic growth and deflation issues. Despite stronger-than-expected inflation, the Bank of Japan stuck to its guns on Friday, signaling that it would be willing to change tack in face of a sharp upward turn, but reaffirmed its belief that inflation will slow later this year.
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