Central Banks Stick to Status Quo Amid Global Uncertainty

The past fortnight was eventful for central banks globally. The Bank of Japan maintained its policy rate at 1 per cent, reiterating its willingness to raise borrowing costs if inflation risks increase.

Similarly, the Bank of England kept interest rates on hold, with Governor Andrew Bailey stating that 'holding Bank Rate is appropriate as global conditions look to be more uncertain and inflationary, while domestic conditions are on balance more benign as regards the prospects for inflation.'

The US Federal Reserve also maintained its policy rate unchanged, despite three members of the Federal Open Market Committee expressing a desire for a quarter per cent rise.