Global Central Banks Hike Interest Rates Amid Rising Inflation

Central banks around the world are raising their interest rates in response to rising inflation. The European Central Bank (ECB) is expected to raise its deposit rate again at its monetary policy meeting on August 10, after increasing it by 0.25 percentage points in June for the first time in two years and nine months. The eurozone's annual inflation rate reached 3.3 percent in August, the highest level in three years.

The Bank of Japan (BOJ) also raised its policy rate to 'about 1.0%' per annum in June, the highest level in 31 years since 1995. The market believes there is a high possibility of further hikes at this month's financial policy-making meeting.

Despite concerns that higher interest rates could shock the financial market, central banks are taking preemptive measures to control prices. Inflationary pressure is spreading globally, with oil and natural gas prices rising following the Middle East conflict.