Central Banks Pause Rate Hikes But Maintain Hawkish Stance as Inflation Remains High

Overview

• The Federal Reserve, Bank of England, and Swiss National Bank have all paused interest rate hikes but maintain a hawkish policy stance.
• Central banks signal rates will stay high as they remain vigilant on stubbornly elevated inflation.
• Further rate increases are possible if price pressures persist, with most policymakers expecting another Fed hike.
• Rising energy costs, strong labor markets, and lingering services inflation present challenges to getting inflation down.
• Investors dumped stocks amid recession worries, pushing yields higher as central banks emphasize need to keep tightening monetary policy.