Insights

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The Fed raises interest rates by 0.25% Investment Insights • MFN

The Fed raises interest rates by 0.25%

In a unanimous decision at its 22 March meeting and as expected, the Federal Reserve brushed aside concerns about the state of the US banking system and the risk of financial instability, raising interest rates by 0.25% to the range 4.75% - 5%. However, it changed its language in a dovish direction. While it previously said that “ongoing increases in the target range will be appropriate” it softened that to “some additional policy firming may be appropriate". Chair Powell emphasised in the press conference the words “some” and “may” and that this change in language was due to the high degree of uncertainty arising from recent banking tensions.

Stefan Gerlach

3 min read
Bank of England hikes rates to deal with persistent inflation Investment Insights • MFN

Bank of England hikes rates to deal with persistent inflation

Bank of England At its latest Monetary Policy Committee (MPC) meeting, the Bank of England (BoE) raised interest rates by 25 basis points to 4.25%, as anticipated by markets. This represents a reduction in the pace of tightening of monetary policy, after two consecutive 50bps hikes, and the 11th hike since December 2021. In the statement issued after the meeting, the MPC reaffirmed the stability of the UK banking system and reiterated its commitment to bringing inflation down to the 2% target.

Joaquin Thul

3 min read

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