Central Banks Turn Hawkish Amid Rising Energy Costs

Persistent inflation and rising energy prices have increased the risk of further rate hikes by major central banks. The European Central Bank recently raised rates while upcoming meetings in the US and Japan could bring more tightening.

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European Central Bank President Christine Lagarde speaks during a press conference following the ECB Governing Council meeting at the guest house of the Deutsche Bundesbank in Berlin, Germany, September 10, 2026. REUTERS/Annegret Hilse

Global central banks are shifting toward tighter monetary policy as energy prices surge and Middle East tensions escalate. Major institutions face renewed inflation risks that threaten to reverse earlier easing cycles.

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