This article is published in collaboration with Statista
by Martin Armstrong
The UK's Bank of England (BoE) announced a further interest rate hike today, increasing .25 points to 5.25 percent. This follows the recent trend set by the BoE and its counterparts in the United States and Europe.
As this infographic shows, after suspending interest rate hikes in June, the U.S. Federal Reserve increased the interest rate margin again at the end of July - from 5.25 percent to 5.5 percent. The European Central Bank (ECB) followed suit accordingly: Due to persistent inflation in the euro area, the key interest rate was raised again by .25 points on July 27.
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. The last time it was at this level was at the beginning of the global financial crisis.
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.
Start leaning Data Science and Business Intelligence tools:
Comments