Fed raises rates by 25 BPS

• The U.S. Federal Reserve will increase the fed-funds rates by 25 basis points to 0.25% to 0.5% in the first benchmark rate increase since late 2018, the Federal Open Market Committee (FOMC) decided on Wednesday. The Committee implied six more hikes at the same speed to follow in the year and could raise rates more if the inflation remains high.

• Also worrying about inflation, the European Central Bank tightened monetary policy last week and is likely to increase interest rates later.

Liu He on Chinese economy

• At a meeting of the State Council’s Financial Stability and Development Committee, Chinese Vice Premier Liu He highlighted (En/Ch) the importance of economic and financial stability and pledged more policies favorable to markets and caution on policies with significant market impacts. After the remarks, Chinese stocks strongly rebounded from a massive sell-off in the past weeks.

BRICKS ties remain strong

• India and Russia are close to a deal on a rupee-rouble trade arrangement on oil amid a heavy wave of sanctions against Russia. Like China, the other two BRICS countries — Brazil and South Africa — have earlier claimed neutrality over the Ukraine war. Major Western media have been criticizing governments and companies refusing to take sides.

Turkmens elect new president

• Serdar Berdimuhamedov, who won 73% of the votes in an election with a 97% turnout rate, will succeed his father Gurbanguly Berdimuhamedov as the President of Turkmenistan on March 19. On Wednesday, Chinese President Xi Jinping had a phone call with Gurbanguly and Serdar.