Western markets follow US lead in raising rates

Developed world stock markets generally rose in the first four months of 2000. In local currency terms, the BMI World Index gained 1.45%, although due to the strength of the dollar versus most major currencies, it declined 1.29% in dollar terms. Higher energy prices, especially for crude oil, threatened to ignite inflationary pressures, as did increasingly tight labour markets in the US and UK. Except for the Bank of Japan, which continued its policy of near-zero overnight lending rates, the world's major central banks generally increased their benchmark interest rates. The US Federal R...