All eyes on Warsh as rate-hike fever spreads across G-7 central banks
The US will be most closely watched in the wake of a higher-than-expected core inflation reading on Sept 11.
G-7 central banks face a crucial week as mounting inflation risks prompt preparations to raise interest rates. The Federal Reserve's decision on September 16 is the most anticipated, with investors betting Fed Chairman Kevin Warsh may defy President Trump's wishes and raise the benchmark rate. The Bank of England may follow suit on the 17th, and the Bank of Japan is expected to increase its key rate at week's end after strong wage growth.
The Middle East war and high oil prices have made it difficult for policymakers to find relief from global price pressures. The Bank of Canada and Canada have already tightened their policies. The week will also see data releases from China, India, Pakistan, and New Zealand, as well as the Bank of England's updated projections for economic growth, inflation, and the outlook for rates.
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