December Rate Hike

Definition ∞ A December Rate Hike refers to a specific increase in a central bank’s benchmark interest rate that occurs during the month of December. This monetary policy adjustment is typically implemented to address inflationary pressures or manage economic growth. It reflects a central bank’s assessment of current and projected economic conditions.
Context ∞ Market speculation and official announcements regarding a December rate hike by influential central banks, such as the Federal Reserve, significantly influence global financial markets, including digital assets. Such policy tightening can reduce overall market liquidity and investor risk appetite, impacting cryptocurrency valuations and market sentiment.