Inflation that is the highest since since 1981 and a potential rate hike of 100 bps that is unseen before.That is the headline that the global markets are pricing in as traders brace for a historic hike from the Fed at its July 26-27 meeting after the scorching inflation print upwards of 9%.
The consumer price index, a broad measure of everyday goods and services related to the cost of living, soared 9.1% in the US, highest in 40 years. This pushing traders to bet that Jerome Powell and his team at the Fed will push for a historic hike of 100 bps, something that the neighbouring nation Canada already shocked watchers with.
This central bank announced a rate hike on Facebook Live!
The Bank of Canada on Wednesday increased rates by a surprise full percentage point amid fears that decades-high price pressures are becoming entrenched.