Central Banks Prepare for Global Rate Hikes Amid Inflation Fears

Global central banks are expected to raise interest rates in response to rising energy prices and ongoing geopolitical tensions, which have fueled inflationary pressures.

The European Central Bank (ECB) is widely anticipated to hike interest rates at its September meeting, following a surge in Brent crude prices over the past month.

According to Mohamed Abdel-Hady, General Manager of Wathiqah Brokerage, several central banks worldwide will raise interest rates due to three primary factors: persistent inflation, energy price surges, and geopolitical volatility.

Abdel-Hady predicts that while the US Federal Reserve might hold rates steady due to underlying economic strength, rate hikes remain highly likely for both the Bank of Japan and the European Central Bank.