Global central banks unleashed a large amount of policy tightening this week, led by the <b>Federal Reserve</b> that delivered a bigger-than-expected 75 basis points hike on Wednesday, as policymakers across the world are increasingly worried about the persistence of runaway inflation and the prospect of a recession.
In Europe, the <b>European Central Bank</b> grew concerned over the rising peripheral bond yields and signaled on Wednesday that it is preparing a new tool to address the fragmentation risk in the euro area.
On Thursday, the <b>Bank of England</b> raised rates on expected lines, while the <b>Swiss National Bank</b> surprised with an unexpected hike.
Meanwhile in Asia, the <b>Bank of Japan</b> refused on Friday to join its peers in raising rates and maintained its ultra loose monetary policy, even vowed more easing if necessary.
<b>Taiwan's</b> central bank on Thursday raised its policy rate for a second time. <b>Hong Kong's</b> de facto central bank followed the Fed and lifted its key rate.
In South America, <b>Brazil's</b> central bank raised its key interest rate, called the Selic, on Wednesday, and signaled more tightening ahead.
