The central banks in the UK and euro zone did as expected this morning, raising rates another half a point, respectively.
With the Fed’s move yesterday, we now have the Fed at 4.75%, the Bank of England at 4% and the European Central Bank at 3%.
As we discussed yesterday, Jerome Powell gave plenty of signals that the Fed has finished the job on the inflation fight. After all, the Fed has now successfully raised rates ABOVE the rate of inflation (above core PCE).
On that front, the BOE and ECB still have a ways to go.
But both have this chart working in their favor …