Global Rate-Hike Cycle Expected to be Muted Amid Market Pressure

The global interest rate-hike cycle is expected to be muted due to already high key rates and market pressure on central bankers to control inflation. The Bank of Japan (BoJ) recently tightened its rates, following similar moves by the US Federal Reserve (Fed) and European Central Bank (ECB). This comes as some of the world's top central banks raise rates to combat inflation fueled by the Iran war.

Central bankers are under market pressure to show that they can rein in long-term bond yields at multi-decade highs. The last hiking cycle began in 2022, and key rates are already much higher than those rock-bottom levels.