The speed of interest rate rises across major developed and emerging nations slowed in July, with policymakers taking a more cautious approach in the face of varying inflation rates and a lackluster global growth backdrop.
Three of the six central banks in charge of the world’s ten most traded currencies raised interest rates in July, while the other three maintained their benchmarks steady, according to Reuters.
In June, there were seven hikes throughout nine sessions.
The Federal Reserve of the United States, the Bank of Canada, and the European Central Bank all raised interest rates by 75 basis points in July, bringing the total year-to-date for G10 central banks to 1,025 basis points over 31 rises.
August seems to be a calm month, with no rate-setting meetings scheduled for several key institutions such as the Fed and ECB; however, the trend for changes beyond that remains unknown.
More indications of a cycle turning came in developing countries, with Chile becoming the first major central bank in Latin America to drop interest rates by 100 basis points in July, after smaller counterparts Costa Rica and Uruguay, which had decreased benchmarks in previous months.
In July, twelve of the 18 central banks in the Reuters sample of emerging economies met to set interest rates.
However, nine central banks chose to maintain policy as is, with rate hikes coming from Turkey and Russia, two nations whose monetary policy circles are shaped by domestic dynamics rather than global trends.
