Rates as of 0500 GMT

Market Recap

Following on from the Feds 75 bps hike, weve had three more central bank meetings. Ill just briefly review what they decided

The Swiss National Bank SNB was the big shocker it raised rates for the first time since 2015 and did so by a nononsense 50 bps! It also predicted that further increases in the SNB policy rate will be necessary in the foreseeable future to stabilize inflation. Moreover it changed its foreign exchange policy from guarding against CHF appreciation to a more doublesided policy. Whereas before the SNB said it is willing to intervene in the foreign exchange market as necessary, in order to counter upward pressure on the Swiss fran,. now their official statement reads, To ensure appropriate monetary conditions, the SNB is also willing to be active in the foreign exchange market as necessary. SNB President Jordan clarified that that means the SNB would be willing to intervene to prop up the currency if it weakens. These changes are clearly supportive of CHF, as the sharp movement yesterday demonstrates.
The Bank of England went pretty much as expected, voting 63 to hike rates by 25 bps the dissenters wanted to hike by 50 bps, as usual. It turned distinctly hawkish though. Whereas last month their conclusion was the rather wishywashy most members of the Committee judge that some degree of further tightening in monetary policy may still be appropriate in the coming months, this time around they confidently asserted…