Central Banks Hike Rates Amid Energy Inflation Concerns

This week's central bank meetings have ended on firmer footing despite several rate hikes and hawkish messaging, according to recent market trends.

The Federal Reserve delivered a 25bp hike to 3.75-4.00%, signaling further tightening is possible, following the European Central Bank's previous rate rise.

The Bank of England resisted joining them, holding at 3.75% by 6-3, although three dissenters wanted a hike and the bank warned that persistent Middle East-driven energy inflation could eventually require tighter policy.

Resilient equities have remained strong throughout the turmoil, with risk appetite improving into the latter part of the week, helped by relief in oil prices and stable long-term yields.