Oil Price Surge Puts Global Central Banks in Inflation Spotlight

Oil prices have surged to near US$100 per barrel, placing central bankers in the spotlight as they prepare to address concerns about inflation.

The Federal Reserve's rate decision on Wednesday will be closely watched, with some officials potentially dissenting from a decision not to raise rates. Bloomberg Economics predicts a 'hawkish hold' from new Chairman Kevin Warsh, who is likely to stress that inflation remains too high and keep a September hike in play.

Central bankers in other countries are also facing pressure to address rising energy costs, with the European Central Bank signaling its readiness to hike interest rates again. The Bank of England and Bank of Japan will also make rate decisions this week, as investors bet on possible moves as soon as September.