The Italian Elections And Their Impact On The Euro, Interest Rates Around The World

Italy: Consumer headline inflation hits 11.8% year-on-year amounting to October print

A busy week for central banks come to an end with plenty of rate hikes, increased prospects of slowing growth, that leave investors with a bad taste in their mouth.

Eyes on rate hike

The Swedish Riksbank was the first major central bank to surprise with a 100bp rate hike.

The US Federal Reserve (Fed) delivered its third 75bp hike. But the dot plot hinted at another jumbo hike before the year-end.

The Bank of Japan (BoJ) maintained its policy rate unchanged at -0.10%, but intervened directly in the FX market to buy yen to fight back the strengthening dollar.

The Swiss National Bank (SNB) raised its policy rate by 75bp.

The Bank of England (BoE) opted for a 50bp hike, combined with an £80 billion Quantitative Tightening, and said the UK is now in recession. The UK will reveal the ‘mini’ budget today.

Norges Bank also increased its policy rate by 50bp but signaled that tightening may be coming to an end. Indonesia and the Philippines also hiked by 50bp. Taiwan raised by a modest 12.5% as expected, Vietnam opted for a 100bp hike, South Africa raised by 75bp…

…and Turkey… cut its rate by 100bp for the second consecutive meeting!

But the week is not over. The Italian elections due Sunday will likely continue pressuring the euro lower.

Watch the full episode to find out more!

  • 0:00 Intro
  • 0:26 Keeping up with the central banks
  • 4:37 UK 'mini' budget is all but mini.
  • 6:15 Continue keeping up with the central banks
  • 7:22 Market update
  • 8:42 Into the Italian elections

Ipek Ozkardeskaya

Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.

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Italy: Consumer headline inflation hits 11.8% year-on-year amounting to October print

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