HSBC: Even if the US-Iran War Ends, More Central Banks May Still Raise Rates

Odaily Planet Daily News HSBC economists Jeanette Henry and Bessen Ellis pointed out in a report that even if the United States and Iran reach a peace agreement in the short term, it is expected that more central banks will still 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.

The central banks of Australia and Norway were already facing inflationary pressures before the conflict and hope that the May rate hikes will 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 anticipates that India and Indonesia will raise rates in the second half of the year. (Jin Shi)