Analysis:Global rate-hike cycle in view as central banks take on inflation

Central banks worldwide are raising interest rates and signaling further increases to combat inflation, which has been exacerbated by the Iran war and resulting supply chain disruptions. The Bank of Japan, Federal Reserve, and European Central Bank have all raised rates in recent weeks, with the Bank of England holding rates steady but signaling possible future action.

ECB Vice President Boris Vujcic stated that high energy prices, stemming from geopolitical tensions, may force policymakers to continue raising borrowing costs for an extended period. While some economists expect a fourth rate hike from the ECB in December, others believe that the peak rate will depend on developments in the Middle East.

The Federal Reserve's move to raise rates, despite President Trump's calls for a reduction, demonstrates the central bank's commitment to eradicating inflation.