Global Central Banks Keep Interest Rates Steady Amid Inflation Fears
Central banks worldwide have decided to hold interest rates steady in response to renewed inflation risks stemming from higher energy costs and conflict in the Middle East.
The US Federal Reserve, Bank of Japan, and Bank of England all left their benchmark interest rates unchanged this week. However, a majority of policymakers at the Federal Reserve voted for higher rates, while three members dissented.
Inflation accelerated in Germany and France, reaching 2.8% and 2.4%, respectively. Japan lowered its economic growth forecast due to the impact of higher oil prices on domestic demand.
Singapore has increased support for households and businesses affected by the ongoing conflict in the Middle East, with an additional S$900 million ($700 million) in assistance being offered.