Photographer: Simon Dawson/Bloomberg

Central Banks Are Raising Rates at Fastest Pace Since 2011, Deutsche Bank Says

  • Bank says 1.75 rate hikes for every cut this year so far
  • Developed central banks the most hawkish with 3 hikes in 2018

Global central banks are delivering interest-rate increases at the fastest pace since 2011, according to Deutsche Bank AG.

With the Federal Reserve set to raise its benchmark on Wednesday for the first time in 2018, Craig Nicol, a London-based macro strategist for Deutsche Bank, told clients in a report that this year has already witnessed 1.75 rate hikes for every cut.

That’s quicker than the 1.25 ratio of last year and the 0.3 ratio of 2012 to 2016. Nicol studied the decision-making of 27 central banks since the 2008 collapse of Lehman Brothers Holdings Inc.

Developed market central banks are the most hawkish. They have raised rates three times this year and on nine occasions in 2017 without cutting once. From 2012 to 2016 there were only three rate increases.

Deutsche Bank is among the banks that predicts the Fed will tighten monetary policy four times this year, rather than the three times Fed officials estimated in December.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE