Central banks turn hawkish again as oil shock stokes inflation
Interest rate hikes are now a global trend, marking the longest monetary tightening since 2023. The West Asia oil shock has driven headline inflation higher in major economies. Central banks like the US Fed and Bank of England are expected to rais...
For the first time since 2022–23, interest rate hikes are back in vogue. A global monetary policy tracker is now showing the longest sustained trend of monetary tightening since 2023.
The trigger is the oil shock from the West Asia conflict: Headline inflation has risen in major economies since February.
Three central bank decisions are lined up this week: The US Fed, Bank of Japan and Bank of England, with hikes expected from two. The European Central Bank has already moved twice since the war began.
Currency markets subdued as oil shock lifts global yields; ECB, U.S. inflation eyed
