Oil Price Surge Puts Pressure on Global Central Banks

Oil prices have surged above $100 per barrel, putting pressure on central banks around the world to act against inflation.

The US Federal Reserve is set to make a rate decision on Wednesday, July 29, and investors are watching closely for any signs of a hike. According to Bloomberg Economics, the Fed is likely to hold rates steady, but with a hawkish tone that keeps a September hike in play.

In Europe, the European Central Bank has signaled its readiness to raise interest rates again, and investor bets point to possible moves as soon as September within the Group of Seven. The UK's Bank of England will also make a rate decision on July 30, with no change expected but a minority faction voting for a hike.

Other central banks around the world are also set to make decisions this week, including in Asia and Latin America. In Australia, Reserve Bank deputy governor Sarah Hunter is scheduled to speak on July 30, after June data showed the labor market still going strong.