HSBC: Even if the US and Iran cease fire, more central banks may still raise interest rates

Odaily Planet Daily News HSBC economists Janet Henry and Bethan Ellis pointed out in a report that even if the US and Iran reach a peace agreement in the short term, more central banks are still expected to raise policy interest rates. They stated that even if the Strait of Hormuz is quickly reopened, the risk of supply shocks and their impact on global inflation and growth will persist, and the current rate hikes are more about credibility.

Central banks in Australia and Norway were already facing inflationary pressures before the conflict and hoped that the rate hikes in May would be the last. The European Central Bank and the Bank of England may begin raising rates in June or July, and if the Federal Reserve raises rates, more emerging market economies may tighten policy. HSBC expects further rate hikes in the Philippines and predicts that India and Indonesia will raise rates in the second half of the year. (Jin Shi)