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The pace and scale of interest rate hikes across major developed and emerging economies shifted into a lower gear in July with policy makers adopting a more cautious approach in the face of varied inflation rates and a lacklustre global growth backdrop. Three of the six central banks overseeing the 10 most heavily traded currencies that met in July hiked rates, while the other three kept their benchmarks unchanged, Reuters data showed. In July, the U.S. Federal Reserve, the Bank of Canada and the European Central Bank lifted their key rates by a cumulative 75 basis points, taking the 2023 year-to-date tally for G10 central banks to a total of 1,025 bps across 31 hikes.

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