Business News›Wealth›Invest›Don't expect stock market to rally when interest rates hikes are announced: Here's why
Don't expect stock market to rally when interest rates hikes are announced: Here's why
Synopsis
Global financial markets are now waiting for the first rate hike by the very influential US Federal Reserve, and it is expected in March 2022. The US Fed had significantly increased liquidity by pumping in additional funds during the easing period.
The interest rate hike season is back. Though RBI did not increase rates during its recent policy review meet, other central banks appear to be on a rate hike spree. Bank of England has hiked rates by 25 bps twice in the past three months, taking it to 0.5%. Central bankers from other emerging economies have also jumped into the rate hike wagon. The Brazilian central bank has increased the economy’s basic interest rate thrice in recent times.
Get Unlimited Access to The Economic Times 
Why ?
Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors
Stock analysis. Market Research. Industry Trends on 4000+ Stocks
Clean experience with
Minimal AdsComment & Engage with ET Prime community Exclusive invites to Virtual Events with Industry Leaders A trusted team of Journalists & Analysts who can best filter signal from noise
