Since the beginning of this year, the intensity and tempo of interest rate hikes have reached the highest level in nearly four decades. On November 2, the Federal Reserve announced that it raised the target range of the federal funds rate by 75 basis points to 3.75% to 4%, which is the fourth consecutive 75 basis point increase this year. After six consecutive hikes, the Federal Reserve has raised interest rates by 375 basis points this year, taking them to their highest level since January 2008.
Under the influence of the continuous tightening of monetary policy by the Federal Reserve Bank of China, major economies are also forced to follow up interest rate hikes for the purpose of preventing capital outflow, stabilizing the exchange rate of local currency and containing inflation.