Will rate hikes end when 2023 ends?
Finally, after a seemingly endless period of interest rate increases by the US Federal Reserve over the past few years, there is some degree of inkling that the rate rises may come to an end at the end of this year.
This morning, some mainstream media speculation has surfaced, considering that Federal Reserve officials are finally looking at making no further interest rate increases in 2024.
Currently, this is pure speculation based on some recent sentiment from the central bankers, and there has been some mention of a potential cessation in increasing interest rates in the last quarter of this year, which did not come to fruition. Instead, the current monetary policy continued, despite inflation now being very much under control and nowhere near the double-digit figures of two years ago, which caused the Federal Reserve (and other central banks in Western markets) to increase interest rates.
Therefore, the currency markets have responded accordingly. Rather than a sudden rise in the value of the US dollar, the British pound has been forging ahead.
In the period between November 9 and December 1, the British pound surged against the US dollar, going from 1.2290 to 1.27. Such gains are relatively rare among major currencies, and quite often, just a 1-cent difference is considered a notable movement.
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