LONDON, Aug 3 Reuters Major developed and emerging market central banks around the globe delivered nearly 1,200 basis points in interest rate hikes in July alone, ramping up their fight against multidecade high inflation with Canada surprising markets with an outsized move.
Central banks overseeing five of the 10 most heavily traded currencies delivered 325 basis points of rate hikes between them last month. This brings the total volume of rate hikes since the start of the year across G10 central banks to 1,100 basis points.
However, July39;s tally was less than the 350 basis points seven central banks delivered in June.
We39;ve reached peak hawkishness of the central banks, Christian Kopf, head of fixed income portfolio management at Union Investment, told Reuters.
Central banks have made it clear that they will not overdo it with the rate hikes, Kopf said, adding that was also the message conveyed by U.S. Federal Reserve chair Jerome Powell.
July was dotted with some eye catching moves. Canada emerged as the chief hawk, stunning markets by delivering the first 100basispoint rate increase among the world39;s advanced economies in the current cycle, lifting its key policy rate to 1.5.
New Zealand delivered its sixth straight interest rate rise and signalled it remained comfortable with its planned aggressive tightening path to restrain runaway inflation.
And then of course the big one The Fed delivered its second straight 75basispoint rate hike, reinforcing its…