HSBC: Even if the US-Iran ceasefire occurs, more central banks may still raise interest rates

Odaily reported that HSBC economists Janet Henry and Bethan Ellis noted 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 rates. They stated that even if the Strait of Hormuz quickly reopens, 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 the May rate hike would be the last. The European Central Bank and the Bank of England may begin raising rates in June or July, and if the Fed raises rates, more emerging market economies may tighten policy. HSBC expects further rate hikes in the Philippines and anticipates rate increases in India and Indonesia in the second half of the year. (Jin Shi)