Top Emerging Markets Hiking Interest Rates Last Week: Indonesia, UAE & More

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Top Emerging Markets Hiking Interest Rates Last Week: Indonesia, UAE & More

By Malvika Gurung -- The past week has seen high volatility in markets globally. The major driver has been the US Fed raising the benchmark interest rate by 75 basis points on Wednesday and announcing an ultra-hawkish monetary tightening policy going ahead, reinstating its fight against the red-hot inflation.

The past week also witnessed a multi-year jump in the US dollar index and fluctuating oil prices, along with escalating geopolitical tensions after Moscow ordered a partial mobilisation of military forces in Ukraine.

Further, several central banks besides the Federal Reserve announced monetary tightening and raised interest rates to tame the soaring inflation despite the global economic growth slowdown.

Here are 6 emerging market economies that hiked their benchmark interest rates last week.

  • Indonesia: The country’s central bank announced a higher-than-expected interest rate hike on Thursday by 50 bps to 4.25%.
  • United Arab Emirates: It announced a 75 bps interest rate hike , at par with the Fed to 3.15%.
  • South Africa: The South African Reserve Bank hiked the repurchase rate by 75bps to 6.25% for the 6th consecutive time.
  • Saudi Arabia: The Saudi Central Bank hiked rates by 75 bps to 3.25%.
  • Philippines: The country’s central bank undertook the highest interest rate hike in over 3 years by 50 bps to 4.25%.
  • Taiwan: The central bank raised interest rates by 12.5 bps for the third consecutive quarter.

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