Surging inflation puts interest rates back in focus as policymakers meet in Japan, US and UK
Iran war and turbulent global bond markets add to pressure as rate decisions loom this week in major western economies Economics viewpoint: perilous UK economic conditions trace back to Trump Central bankers in economies including the US, Japan and the UK will face a moment of truth this week, as surging inflation raises the prospect of higher interest rates. Policymakers in all three countries…
As surging inflation puts interest rates back in focus, policymakers from major western economies, including the US, Japan, and the UK, are set to meet and make rate decisions this week. The pressure comes from the Iran war, turbulent global bond markets, and the recent intensification of the US-Iran conflict. In the US, new Chair of the Federal Reserve, Kevin Warsh, faces off against former President Donald Trump's demands for rate cuts, as Trump believes the United States should have the "LOWEST RATE of any country in the World".
The Bank of England's Governor, Andrew Bailey, remains calm about above-target UK inflation, attributing rising mortgage rates to the impact of rate hikes without the Bank's intervention. The Bank of Japan is expected to raise interest rates on Friday, potentially signaling a reversal of a 30-year deflation battle.
Written by urgent.news from The Guardian US's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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