G7 Central Banks Prepare for Crucial Rate Decisions Amid Rising Oil Prices

The G7 central banks are gearing up for crucial rate decisions this week amidst rising oil prices nearing $100 per barrel. This development has increased the risks of new inflationary pressure, according to Bloomberg.

The focus will be on the decisions of the US Federal Reserve, the Bank of England, and the Bank of Japan. While most economists do not expect rate changes in the coming days, investors suggest that as early as September, a number of central banks may return to raising rates due to rising oil prices.

The Fed is likely to keep the interest rate unchanged but will signal readiness for a possible increase in the fall. According to Bloomberg Economics, Fed Chairman Kevin Warsh will emphasize that inflation still exceeds the desired level.