Rising Interest Rates Loom as Inflation Pressures Mount

The global economy is bracing for higher interest rates as policymakers in key economies meet this week. Central bankers in the US, Japan, and UK will set rates against a backdrop of turbulent bond markets and surging inflation.

In the US, new Federal Reserve chair Kevin Warsh faces pressure from President Donald Trump to lower interest rates. However, Warsh has stated that without continued progress towards the 2% inflation target, policymakers would have 'work to do.'

US inflation remains above the target at 3.4%, with higher energy costs expected to feed a fresh rise in prices. Markets and economists predict the Bank of England will hold rates steady on Thursday.