BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
Indonesia Passes New Central Bank Law, Raising Investor Concerns Over Policy Independence 
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South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
Yesterday’s price action post FOMC announcement strongly suggest that the market is more focused and more concerned about the future actions of the European Central Bank (ECB) that the U.S. Federal Reserve.
Yesterday’s policy action, statements, and projections - all were very hawkish; Federal funds rate was increased by 25 basis points along with other rate benchmarks, Fed projected increased growth, higher inflation, lower unemployment, and higher Federal funds rate. Despite that, the U.S. dollar declined against all its major counterparts, especially the euro only after a brief rise. The euro immediately declined after the FOMC announcement from 1.179 against the USD to 1.172 area, but recovered grounds since then and is currently trading 1.183 area.
With Fed, the market is pretty clear that the Fed will hike twice more this year and thrice next year with a constant reduction in its balance sheet. But, with ECB, the market is not certain about the timing of the QE end, tapering projections, and interest rate projections. We believe that market is increasingly focused on the ECB meeting, which is today, as the current bond-buying program of €30 billion per month will expire in September this year.
