Central Banks Unite Against Inflation with Global Rate Hikes

Major central banks are preparing to synchronize their interest rate hikes in response to persistent inflation pressures. European Central Bank Chair Christine Lagarde's hawkish rhetoric following a 25 basis-point rate hike suggests that other central banks will follow suit.

The upcoming policy decisions from the Bank of England, Federal Reserve, and Bank of Japan will likely lead to higher borrowing costs across asset classes.

Thomas Pugh, an RSM U.K. economist, expects the Bank of England to leave interest rates unchanged at 3.75%, but notes that a synchronized global tightening cycle is growing in likelihood.