Rate Hike Momentum Builds as Central Banks Shift Away from Low-Rate Era

Central banks are firmly shifting away from low-interest rate policies, with key economic data releases this week indicating that interest rates are poised to rise across the globe.

The post-GFC era of low rates is over, according to a recent note by ANZ. The European Central Bank has already hiked rates twice, and current forecasts suggest that the US Federal Reserve will increase rates in its upcoming meeting, likely taking them to 3.75%-4%.

Other major central banks, including the Bank of Japan, are also expected to raise interest rates. However, economists remain uncertain about the impact of these rate hikes on inflation, particularly with the recent surge in oil prices.