Central Banks Hold Steady Amid Rising Energy Costs

Global central banks maintained interest rates unchanged this week due to rising energy costs. The Federal Reserve and Bank of England saw some officials push for hikes. Inflation accelerated in Germany and France, impacting consumer prices while Japan lowered its economic growth forecast amid higher oil prices.

The Federal Reserve kept borrowing costs steady, but three officials voted for higher rates. The Bank of Japan and Bank of England also held rates steady, but like the US, several BOE policymakers pushed for tighter policy. Elsewhere, higher costs complicated the outlook.

Inflation accelerated in Germany to 2.8% in July, while France saw a jump to 2.4%. Japan lowered its economic growth forecast due to expectations that higher oil prices will weigh on domestic demand. Singapore expanded support for households and businesses facing higher costs from the Middle East conflict.