- Fed and ECB both raise interest rates by 25bps
- Policymakers take stock as impact of earlier rate hikes feeds through
The US Federal Reserve and the European Central Bank (ECB) both increased interest rates by 25 basis points in monetary policy meetings this week.
The ECB’s latest increase was the smallest since it started raising rates in July last year. Meanwhile, Fed Chair Jerome Powell told reporters that the US central bank was “getting close” to the end of the hiking cycle. After a period of sharp and sustained rate hikes (see table), monetary policy seems to be entering a new phase.