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A day after the US Federal Reserve increased its official interest rate another 75 basis points, the Bank of England (BoE) has delivered its biggest interest rate hike in 30 years, also lifting its official rate by 75 basis points to 3.0%.
The aggressive increase was despite the BoE forecasting a two-year contraction in economic activity through to June 2024, which would represent the longest recession since at least 1955.
The next chart plots the central bank monetary tightening across a selection of key economies:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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