HSBC: More Central Banks Could Hike Rates Even If US-Iran Ceasefire

BlockBeats News, May 19th - HSBC Bank economists Janet Henry and Ben 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 expected to raise policy rates.

They stated that even if the Strait of Hormuz reopens quickly, the risk of supply shocks and their impact on global inflation and growth will persist. The current rate hikes are more about credibility. The central banks of Australia and Norway were already facing inflation pressures before the conflict and are hoping that the May rate hike will be the last one. The European Central Bank and the Bank of England may start raising rates in June or July, and if the Federal Reserve raises rates, more emerging market economies may tighten policy. HSBC expects the Philippines to further raise rates and anticipates rate hikes in India and Indonesia in the second half of the year. (FXStreet)