Debt Mutual Fund Strategy
0
2
1
May-01
3
4
5
Jun-02
Jul-03
Aug-04
Sep-05
28
16
-0.50
Monetary Policy Tightening continued with inflation rates surging to multi-decade highs...
Classification - Restricted
US Federal Funds Rate (%)
4.50
4.50
US 10 year Treasury Yield (%)
4.00
-Upper Bound
⚫Lower Bound
4.00
3.50
3.50
3.00
2.50
Federal Reserve raised the
policy rate by 75 bps for the
fourth
3.00
time in a row
2.50
in
2.00
November 2022
2.00
1.50
1.50
1.00
1.00
0.50
0.50
0.00
0.00
Jan-20
Feb-20
Mar-20
May-20
Jun-20
Aug-2
Sep-20
Nov-20
Dec-20
Feb-21
Mar-21
May-21
May 21
Jun-21
Aug-21
Sep-21
Nov-21
Dec-21
Feb-22
Mar-22
May-22
Jun-22
Aug-22
Sep-22
Nov-22
European Central Bank (ECB) Main Refinancing Rate (%)
Oct-06
Oct-07
Nov-08
Dec-09
Jan-11
Feb-12
Confidential/Restricted
Mar-13
Source:- US Federal Reserve
ECB raised the policy
rates by 75 bps in
October 2022, with it
marking the third major
3.00
2.00
increase in a row.
Apr-14
May-15
Jun-16
Jul-17
Aug-18
Sep-19
Oct-20
Nov-21
-1.00
0.00
Jan-20
1.00
4.00
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jul-22
Euro area 10-year Government Benchmark bond yield (%)
Source:- Bloomberg
US FOMC Comments
"The Committee anticipates that ongoing increases in the target range
will be appropriate in order to attain a stance of monetary policy that is
sufficiently restrictive to return inflation to 2% over time. In determining
the pace of future increases in the target range, the Committee will take
into account the cumulative tightening of monetary policy, the lags with
which monetary policy affects economic activity and inflation, and
economic and financial developments.
European Central Bank (ECB) Comments
"We expect to raise interest rates further, to ensure the timely return of
inflation to our 2% medium-term inflation target. We will base the future
policy rate path on the evolving outlook for inflation and the economy,
following our meeting-by-meeting approach."
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Classification - Restricted
Nov-21
Jan-22
Mar-22
HDFC BANK RESEARCH
May-22
Jul-22
Sep-22
Source:- European Central Bank
Country
Latest Interest Rate
Actions by Central Bank
(Bps)
75
Euro Area
75
United States
75
Saudi Arabia
50
South Korea
50
Canada
50
Indonesia
25
Australia
HDFC BANK
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