Shafaqna English– Inflation has remained persistent despite previous tightening efforts, while economic growth has held up better than expected. Together, these two factors have made further rate hikes by major central banks more likely. The situation is made more complex by rising energy costs and unresolved Middle East tensions, both of which add upward pressure on prices.
By raising rates 25 basis points on Thursday, the European Central Bank continued its tightening cycle. The action precedes next week’s much-awaited policy meetings of the U.S. and Japanese central banks, both of which could announce their own tightening measures, pointing to a synchronized move by major central banks toward more restrictive monetary policy.
Source: Reuters
ECB: Energy inflation remains contained