Global Rate Hike Fever Spreads Across G-7 Central Banks

Central banks from much of the Group of Seven are facing intense pressure to raise interest rates as inflation risks mount. The week's events will be pivotal, with decisions from the Federal Reserve on September 16 followed by those in Britain and Japan on successive days.

The US is under particular scrutiny after a higher-than-expected core inflation reading on September 11. This has sparked investor bets that Fed Chairman Kevin Warsh and his colleagues will raise their benchmark rate, likely defying President Donald Trump's wishes.

The Bank of England is not expected to raise rates on September 17, but with three officials favouring a hike at the late-July meeting and price risks simmering, a shift towards an increase as soon as November cannot be ruled out.