Economics-Following the Fed's global interest rate hike

Global interest rate hike

• Hong Kong Monetary Authority: 2022.6.16 to raise interest rates by 3 yards to 2% to prevent capital flight, the third interest rate hike this year
• Taiwan: Taiwan 2022.6.16 raises interest rates by half a yard ((0.125 percentage points) - 1.5-1.75%, for reference
• Brazil raises interest rates: Brazil raises interest rates by 5 basis points to 13.25% on June 16, 2022 , making it the only relatively positive country in the world (referring to inflation and interest rate differentials)
• The Bank of Japan is still "a clear stream". While promising to maintain the interest rate level at zero, it also stated that it will expand its balance sheet if necessary. This is also the premise of financial giants' sniping. The Japanese yen, which is deeply bound to the US dollar, wants to react Do it your way and see if you can withstand the pressure.

Under the influence of interest rate hikes, mortgage borrowers and large enterprises in many countries are facing severe challenges, and the financial market is also facing risks. Markets related to the strength of the U.S. dollar are all vying for the liquidity of the U.S. dollar, and the key depends on the strength. However, raising interest rates will inhibit the growth of the domestic economy. In addition to the previous printing of bonds and currency, if the interest rate is too high, the interest on the debt will exceed the GDP, which is also an upper limit for interest rate hikes.

The three major global chain effects brought about by the Fed's aggressive interest rate hikes by the central banks of many countries

Davis double click