Crown Agents Bank

3/3 It moved up immediately before the announcement as markets started to factor in the chances of a 50bp move and indeed 3 of the 9 members did vote for the large move. GBP has since given up those recent gains…"

2/3 Despite a weakening economy, inflation remains at worryingly inflated levels globally, a fact acknowledged by both the Fed and Swiss National Bank in the past 24 hours. The pound had weakened in recent days against the weak data and rampant dollar.

1/3 Following today's rate hike announcement by @bankofengland, our Head of Global Markets Treasury, Chris Wilgoss comments: "The BOE raised rates for the 5th meeting running taking the base rate to 1.25%.

3/3 "They have also stated they will be active in FX markets if necessary indicating their continuing wish to not have an over strong franc.” #SNB #swissnationalbank #economics #InterestRate

2/3 "They have moved from negative 75bp to negative 25bp, a significant move in the scheme of things. #SNB #swissnationalbank #economics #interestRates

1/3 On today's rate hike announcement by @SNB_BNS, our Head of Global Markets Treasury, Chris Wilgoss comments: “A big change out of Switzerland today, Swiss National Bank (SNB) has increased rates for the first time in 6 ½ years. #SNB #swissnationalbank #economics #InterestRate

3/3 Markets had consolidated somewhat leading up to the announcement, but are now struggling to hold on to those gains."

2/3 Following Friday’s 40-year high CPI print the market had increased bets on this outcome, a move previously ruled out by Chair Powell. Equities have been under extreme pressure, treasury yields have risen sharply, and the dollar has been dominating FX markets.

1/3 In response to the Fed's interest rate hike statement, Chris Wilgoss, Head of Global Markets Treasury at Crown Agents Bank comments: "The Fed raised rates by 75bp, following intense speculation over the last few days that the move may be higher than previously envisaged.

3/3 They indicated a 25bp increase at the next meeting in July, with potential for a further larger hike in September, stating that 50bp was not out of the question if "if the medium-term inflation outlook persists or deteriorates"

2/3 With inflation soaring in the eurozone - real interest rates are heavily negative and markets are pricing a series of increases this year.

1/3 In response to the European Central Bank's interest rate hike statement, Chris Wilgoss, Head of Global Markets Treasury at Crown Agents Bank comments: "No surprises today as the ECB left rates unchanged at today's meeting, with the EUR lowering following the announcement.

3/3 Das not only raised the expected level of inflation over 2022/23 from 5.7% to 6.7% but dropped the ‘accommodative’ language from the statement, signalling the possibility of more hikes to come".

2/3 Although expectations varied, the consensus was for a large hike. RBI Governor Shaktikanta Das has followed many other EM central banks in aggressively tightening monetary policy to attempt to curb inflation stoked in part by the Russian invasion of Ukraine.

1/3 In response to the Reserve Bank of India interest rate hike, Omar El-Gazzar, FX Dealer at Crown Agent Bank comments "Big moves in interest rates in India this morning. The Reserve Bank has raised its key repo rate by 50 basis points.

3/3 Prices have risen in Kenya, the most recent figures showed a 6.5% rise year on year, yet they still remain within the central bank's target band of 2.5% to 7.5%. Officials however deemed it necessary to tighten policy rates to ‘further anchor inflation expectations".

2/3 This unexpected decision comes as many other emerging market central banks have raised rates to stay in line with the FED’s curve while trying to rein in inflation.

1/3 In response to the Central Bank of Kenya's interest rate hike, Omar El-Gazzar, FX Dealer at Crown Agent Bank comments "Interesting moves in Nairobi today as the Central Bank of Kenya raised interest rates by 50 basis points, where a 'wait and see' approach was expected.

3/3 The welcome directive by the central bank will allow the Kwacha to find ‘a market-clearing position’, say the Reserve Bank which should help to relieve the current pressure on Malawi’s trade balance".

2/3 The move comes as Malawi has had consistent trouble attracting hard currency while having, according to the Reserve Bank, an ‘insatiable appetite for imports’; creating structural imbalances in the economy.

1/3 In response to the Reserve Bank of Malawi's devaluation statement, Omar El-Gazzar, FX Dealer at Crown Agent Bank comments "A sharp move in FX in Lilongwe today, as the Reserve Bank of Malawi has devalued the Kwacha by 25%.