Global: 2018 Could Be a Painful Year for Central Banks
MIN READDec 14, 2017 | 20:59 GMT
It's been a busy few days for the world's leading central banks. From the United States to Asia to the Middle East, various financial institutions have been sending signals about the course of global banking going into 2018. On Dec.13, the U.S. Federal Reserve hiked interest rates for the third time this year by a quarter point, from 1.25 percent to 1.5 percent. It also signaled that there would be three more hikes in 2018. The same day, the People's Bank of China raised short- and medium-term interest rates by 5 basis points (0.05 percent), describing it as a normal reaction to the Fed's hike. The next day, on Dec. 14, Turkey's central bank raised its lending rate by half a percentage point, and the lira immediately dropped sharply. These events reveal just how vulnerable certain parts of the global economy will be to U.S. monetary policy going into next...