Analysis:Global rate-hike cycle in view as central banks take on inflation
Updated forecasts show 16 of 18 policymakers expect at least one more quarter-point increase this year as energy costs keep inflation elevated.
- On Friday, the Bank of Japan joined the Federal Reserve and European Central Bank in tightening policy, signaling further rate hikes to combat inflation driven by rising energy costs.
- Escalating conflict in the Middle East and Houthi threats in the Red Sea have pushed energy prices higher, forcing central banks to pivot from previous easing expectations.
- Federal Reserve chief Kevin Warsh raised rates Wednesday, noting he would be "hard-pressed to describe broad financial conditions as restrictive," while the Bank of England held rates Thursday but signaled potential future increases.
- "The expectation now is that energy prices will stay elevated for longer," ECB Vice President Boris Vujcic told Reuters on Friday, as BOJ Governor Kazuo Ueda declared, "Our policy phase has changed."
- Financial markets now price in nearly four quarter-point hikes over the next year, while JPMorgan analyst Greg Fuzesi warned that a "hike above 3 per cent cannot be ruled out entirely" depending on Middle East events.
12 Articles
12 Articles
Frankfurt. The possibility of a new global cycle of interest rate increases is glimpsed as some of the world’s major central banks raise their respective revenues and suggest that further increases may be needed to curb inflation driven by the U.S. and Israel’s war against Iran.
Seeking Alpha
The Business TimesA Synchronized, Yet Shallow, Global Hiking Cycle
Global central banks are tightening monetary policy. While synchronized rate hikes have raised concerns about risk assets, equities remain near record-highs, supported by strong earnings gro
Global rate-hike cycle in view as central banks take on inflation
The prospect of a new global interest rate-tightening cycle is coming into view as some of the world's top central banks raise rates and signal more may be needed to tame inflation fuelled by the Iran war.
Channel News Asia
PressNewsAgencyAnalysis:Global rate-hike cycle in view as central banks take on inflation
FRANKFURT, Sept 18 : The prospect of a new global interest rate-tightening cycle is coming into view as some of the world's top central banks raise rates and signal more may be needed to tame inflation fuelled by the Iran war.Key rates are already much higher than the rock-bottom levels from the last hiking c
Global FX Market Summary: Fed Hikes Rates, Oil Shocks Fuel Inflation, and Global Central Banks Pivot, 18 2026
Global central banks tightened monetary policy amid persistent energy-driven inflation, while the Federal Reserve signaled further rate hikes. Federal Reserve Implements 25-Basis-Point Rate Hike Amid Persistent Inflation Pressures The Federal Reserve executed a decisive pivot by raising its Fed Fund Target Range by 25 basis points to a bracket of 3.75%-4.00%, marking its first rate increase in three years. Backed by a unanimous committee vote, p…
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