indian farmers are facing a 12 punch this year, stifling heat and a wheat export that will take a look at how they are trying to cope both of these issues. i'm chris kolber. welcome to the program. it is central banks that are setting the agenda today. in a surprise move, the swiss national bank, raised its policy interest rate for the 1st time and 15 years putting heavy pressure on european financial markets. that after a surprised meeting of the european central bank yesterday. and of course, the feds announcement to drastically hike interest rates. the 3 quarters of a percentage point increase is the feds largest since 1994 economists and investors had been anticipating an aggressive response. after the latest data showed years, consumer prices grew at their highest pace in 40 years and may here is fed chief durham, paul. we at the fed understand the hardship that high inflation is causing. we're

strongly committed to bringing inflation back down and we're moving expeditiously to do so for more or less bring in michael use in chief market analysis at c m. c markets. michael, let's talk about the fed here in a 2nd. but 1st things must be looking rather grim when the swiss national bank feels the urge to act and raise it's policy interest rates for the 1st time in 15 years. yeah, i think that's absolutely right, but i also think they have one on the european central bank. you mentioned your reference, the emergency meeting yesterday and the fact that the c p is likely to raise rights in july and possibly september. and i think this was national banks, but it's interest, right? so it's already deeply negative. mine is no point 75. so they've raised that to

mind is not going to, but they are still very much behind the curve when it can happen when it comes to the right hiking cycle. so i think what we're seeing here in terms of the swiss is i'm looking to get a head start ahead of the c b next month. michael, let's take a look across the pond. the fed raising rates yesterday at the highest rate in decades. the question is to what expense, i mean higher interest rates will be calling the economy. is it a question to you if a recession is coming, or merely how bad it will be? i think, i think we're place now. where is the question a degree a recession is coming? whatever central banks do that is not going to change that. it's really a matter of degree is you said higher prices, the most vulnerable, hardest. those on fixed incomes. we've got gasoline, petrol prices, record highs,

and ultimately if inflation remains in trench for prolonged that particular cohort are most fun. will say that. so essentially central banks from the horns of the dilemma. do they allow inflation to remain entrenched for longer or do they start an aggressive rate hiking cycle? and i think that's what you're starting to see. play out right now. we've the bank of canada by 50 basis points. we've seen the abi i high by 50 basis points, we've seen the front reserve high by 75 with potential of more to come. can we seen the s and b and also the bank of england is also on the right hiking cycle as well . so i think what we're seeing at the moment is a significant shift in central, but in thinking inflation is the main enemy now. and really it's a matter of degree as to how bad any recession is likely to be. and michael, on that know, when will these rate hikes, when will they start showing impact?

well, that's the big question is going to take some time for them to take effect. let's not forget that an awful lot of this inflation is in energy prices and in food. and as you well know, all of that is priced in dollars. so what you're seeing is significant currency weakening. i would hope i would like to think that we could start to see some effect over the course of the next 3 to 6 months. certainly the fate is projecting that we're likely to remain fairly high in terms of inflation for late into the middle of next year. but hopefully, hopefully it'll be less than that. mike a, he isn't chief market analyst as cmc market. michael, as always, thank you. and out to some of the other global business stories making news, they pair of newly fired, last sued. acute, also secures as danish shipping for a merced line, limited, a failing to protect employees from sexual assault and harassment. the 1st was

filed by a former cadet who spoke anonymously of her experience last year. the 2nd one was filed by a former inter toymaker lego plants to invest more than $1000000000.00 in a factory in the united states to short and supply chains. and keep up with growing demand, the new factory will be it's 7th worldwide, and is in line with a decade old strategy of placing production close to leg goes key markets. saudi arabia's government has seized rainbow colors, children's toys, and clothing from stores. the raids were filmed by the countries department of commerce authorities said the multicolored bows skirts and had shown gate colors and were quote, contrary to muslim faith finds were imposed on retailers carrying the items it is to india now, where farmers have suffered twice over this year. first,

they experienced extreme heat wave which damaged their wheat crop in the north of the country. and then there's the government's export band, which has been in place since the beginning of june. we visited those affected rogers on one of indiana's most important agricultural states. in recent months, some of the temperatures here have been as high as 50 degrees celsius. the other family has never experienced this kind of he's. they've just harvested their wheat on their for hector as of land usually, or we probably troy and it's last stage of growth by the sudden extreme here that it is and the plants were overwhelmed and could not form grains less weight was severely damaged. well, it's either that the of us will go to that or the poor harvest is compounded by the government's decision to hold wheat exports in the local wheat market. growers are now left for grain. they can only sell domestically, only the goods that have already been paid for will be exported. and this is cause

a stir among farmers is going to be farmers are hard hit by the decision. the export is allowed again, only then indian farmers will get a good price to their rece. the politicians are only talking about themselves and not the farmers. i'm going to officially, the government says it wants to keep police in the country. so people have enough to ease experts say the decision is really a pretext to reduce food prices. the war and the gray is just the last latest thing that has caused food presentation to maintain this, the pete and so we're not about to grow our way out of it in one season. so the food price in places is going to be around for 12 years, maybe more, depending on how the weather shakes out. typically, indian traders would have sold a wheat to egypt, the philippines, or vietnam. their trade association for the government's decision won't just negatively affect indians mano gave out there. those are when you talk about the monetary and situation, you have to say to citizens of the country that had

a deficit. if we could have been adequately supplied with food. if exports were allowed, model for the family there saddled with yet another problem. the tomatoes and other plans could not tolerate the extreme. he's well either. they've harvested less. bo barbara lily, move to the lower current use of tomatoes chillies. a miller, susan has been affected by the heat so much that we're fetching water to irrigate our feels from the surrounding areas. i guess i'm a so got it since the ground water in our wells has been to please if you're gonna have are the only the only the families still living off the bumper harvests of recent years. they're also critical of the export ban. the son is supposed to take over the farm one day and potentially it's problems. let's get more of this from dw correspondent charo car to care in delhi charo. how big is the impact for indian farmers of the heat wave on the one hand, and not being allowed to sell their produce on the foreign market on the other

will. yes, so chris, it was like a double whammy of thoughtful thomas 1st. and we took the heat hit their produce because of which both the quality as well as the quantity of the production came down as a result of which public procurement, which is the government's smith, a system of buying food green from the farmers. public procurement also came down and then came the export ban. so the farmers were in a fixed, and these were especially the middle and the low income farmers, which do not have to big land holdings, but the farmers would afford this or they, they managed to hold their produce. they're still holding on to their produce to be able to get higher prices in the future. but a lot of these farmers have now sold, have already sold their produce part of it to government and part of it to private . initially they got a good price,

but now the price has come back to the pre been levels. chris, so has this export then helps to keep prices from rising? well, it would appear so chris, even though internationally it has been looked at, looked upon as a, as a flip flop. because just before the ban, india was saying that it's exports will only go up. and it's looking for newer markets to explore weed and suddenly came the export ban. so from a policy policy perspective, from the international food market perspective, it was seen as a flip flop, but domestically appears to have helped because initially of farmers also good got a good rate for their produce, for those farmers who managed to hold their produce. and for the average consumer, the prices have not risen as much as they will fear to, which is reflecting in the latest retail inflation numbers. chris and the government is not pondering to loosen this export ban. charo. what's behind that?

well chris, right now the situation is in a flux and no one has a clear idea as to a what is going what, what was what the next week is going to look like. so there are there been only a couple of media reports which point out that this export ban is likely to be eased out a little bit, but the government has not given any indications to that effect so far. in fact, the government concerned right now is how to manage a subsidy scheme that it had launched during the pandemic. because the buffer stock is that the historic law and the if the export ban is ease and then how will the government be able to sustain that? the bend demick ski, chris dw, start again, deli charo. thank you. and here's a reminder of the top of business story we're following for you as the sour and the hike of interest rates not seen in decades. do u. s. federal reserve and the team runaway inflation is civil. a move by the swiss

central bank is adding to growing fears of recession and that wraps up our shoulder for more check out our website at d. w dot com slash business or the d. w. news, youtube channel. i'm chris kolber and belinda, thanks for watching. have yourself a successful day with ah, with

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