Interest Rate Hikes Resume Amid Oil Shock and Rising Inflation

Central banks have resumed interest rate hikes due to rising inflation trends and an oil shock triggered by the West Asia conflict.

The longest sustained trend of monetary tightening since 2023 is being seen, according to a global monetary policy tracker.

The trigger for these rate hikes is the increase in headline inflation in major economies since February.

Three central banks are set to make decisions this week: the US Fed, Bank of Japan, and Bank of England, with two expected to raise interest rates.