{"id":2644888,"date":"2026-08-14T07:01:02","date_gmt":"2026-08-14T11:01:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/interest-rate-hikes-go-global\/"},"modified":"2026-08-14T07:05:40","modified_gmt":"2026-08-14T11:05:40","slug":"interest-rate-hikes-go-global","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/interest-rate-hikes-go-global\/","title":{"rendered":"Interest rate hikes go global"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">10<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finterest-rate-hikes-go-global%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2644888&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Global inflation has recently increased due to energy price spikes driven by conflicts in Iran and supply chain issues, among other factors. Despite a decline to a 3.5% annual rate in the U.S. for June, inflation remains higher than the Federal Reserve\u2019s target of 2%. Central banks worldwide, including the Reserve Bank of Australia, Norway, the European Central Bank, and the Bank of Japan, have responded by raising interest rates to combat rising costs, particularly those linked to energy. Economists predicted lower rates earlier in 2026 but now face uncertainty about whether to <a href=\"https:\/\/amzn.to\/3YuVZYV\" >continue tightening monetary policy amid conflicting signals<\/a> such as high consumer spending and a slowing labor market. Inflation\u2019s persistent nature is debated, with some attributing it mainly to oil prices and others citing broader factors like pandemic-related price increases. Future policies depend on inflation expectations and economic data, with a potential for further rate hikes or cuts as central banks and markets navigate these uncertainties amidst fears of recession and inflationary spirals.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/inflation\/\">Global inflation<\/a> is experiencing a renewed upward tick driven by recent energy price spikes from the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/iran\/\">Iran<\/a> war and supply chain pressures, among other challenges to keeping prices low. After years of postpandemic inflation cooling, central banks across the world have recently raised rates, and some analysts predict the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\">Federal Reserve<\/a> could do the same, despite pressure against it from President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">Donald Trump<\/a>.<\/p>\n<p class=\"wp-block-paragraph\">It\u2019s no academic exercise. <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\/\">Interest rates<\/a> make borrowing money more expensive. For everyday life, this <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/consumer-sentiment-in-october-plunges-to-lowest-level-in-months-concerns-over-inflation\/\" title=\"Consumer sentiment in October hits record low due to rising inflation concerns.\">means higher monthly payments<\/a> for mortgages, car loans, and credit cards.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/senate\/4686778\/midwest-senator-investigation-roblox-child-safety-grooming-explicit-content\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Midwest senators open investigation into Roblox allegedly putting profits over child safety<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4686536\/joe-concha-florida-naked-dining-restaurant-go-fully-clothed-to-arbys\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Joe Concha on Florida\u2019s naked dining restaurant: \u2018I\u2019ll happily go fully clothed to Arby\u2019s\u2019<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4686257\/tariffs-on-mexican-beers-popular\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Americans want to make domestic beer great again: Poll<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">The U.S. annual inflation rate stands at 3.5% for the 12 months ending in June, according to Bureau of Labor Statistics data. This reflects a decline from May\u2019s rate of 4.2%. The Fed\u2019s inflation target is 2%. And the inflation situation is grimly similar in other Western democracies.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">Nonetheless, interest rates are on the rise globally. Rate increases started in early February, when the Reserve Bank of Australia board enacted the first of its three hikes. The tightening spread to other economies over the next few months. In early May, Norway\u2019s Norges Bank raised rates, with the European Central Bank and Bank of Japan following a month later. The Reserve Bank of New Zealand raised rates in July.<\/p>\n<p class=\"wp-block-paragraph\">Early in 2026, economists and financial markets largely expected the opposite outcome. Morgan Stanley and Deutsche Bank analysts said there were favorable conditions for lower rates in the United States, mostly from the slower-than-expected labor market. Stanford Institute for Economic Policy Research analysts described the economy as being in a strange place: It was experiencing a slower job market, but consumer spending remained high. Uncertainty over the Trump administration\u2019s tariff policy also complicated matters, as companies decided whether to absorb tariff costs or pass them down to consumers.<\/p>\n<p class=\"wp-block-paragraph\">Economist Mark Zandi went so far as to predict three rate cuts in 2026 as the Fed looked to encourage borrowing and stimulate the economy. He added the Fed could see pressure from the White House to lower rates to help Republicans in the midterm elections.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">In Europe, policymakers at the ECB disagreed on whether to cut rates or keep them steady. They expressed similar worries about job growth. While ECB officials were confident the bloc could survive any sudden price shock, some members said it would be better not to make any predictions about interest rates. This was because the economic outlook was so uncertain.<\/p>\n<p class=\"wp-block-paragraph\">Sticky inflation was mostly blamed for the rising interest rates, but central bank leadership disagreed on what caused higher prices. The central banks of the European Union and Japan pegged increased energy costs to the Iran war. The ECB Governing Council said it wouldn\u2019t know what sort of secondary price shocks might hit the economy so long as the war dragged on. The Bank of Japan added that inflation could increase as the yen\u2019s value against the U.S. dollar continued to fall.<\/p>\n<p class=\"wp-block-paragraph\">Australia and Norway also blamed the Middle East conflict but noted that inflation had been running hot for months.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cThe rapid rise in business costs in recent years will contribute to keeping inflation elevated ahead,\u201d Norges Bank governor Ida Wolden Bache said last month.<\/p>\n<p class=\"wp-block-paragraph\">Australian businesses have been paying more for goods since the middle of 2025. Reserve Bank officials said cost pressures are now being passed down to consumers. That\u2019s caused consumer spending to slow, but not enough for the bank. Following three rate hikes this year, bank officials plan to wait for more information on the economy and oil prices before moving forward with further rate decisions.<\/p>\n<h2 id=\"h-opinions-differ-about-why-inflation-lingers\" class=\"wp-block-heading\">Opinions differ about why inflation lingers<\/h2>\n<p class=\"wp-block-paragraph\">Economists interviewed by the <em>Washington Examiner<\/em> offered different explanations for why inflation has proven persistent.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Jai Kedia, a research fellow at the Cato Institute, saw rising oil prices as the primary cause. He said there was a trickle-down effect on other goods because oil is a component in synthetic fabrics and plastics. \u201cThe rate hikes were a response to this.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Those higher energy prices tell only part of the story, said John H. Cochrane, a senior fellow at the Hoover Institute. He harkened back to stiff price rises during the COVID-19 pandemic.<\/p>\n<p class=\"wp-block-paragraph\">\u201cInflation never got fully under control after 2021-2022, and the current surge is not all oil prices, so central banks feel they have to move fast to contain a wider outbreak,\u201d Cochrane said in an interview.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">The debate over the source of inflation is now shaping expectations for other central banks.<\/p>\n<p class=\"wp-block-paragraph\">The question now is whether other major central banks will continue their wait-and-see strategy or begin increasing rates.<\/p>\n<p class=\"wp-block-paragraph\">The Federal Reserve Bank and the Bank of England have kept rates steady \u2014 for now. Some of that is because the job market in both countries has been steady, but weak. Unemployment in both nations remains above 4%, and statistics show lower hiring by British and American companies.<\/p>\n<p class=\"wp-block-paragraph\">Economists have predicted that another wave of rate increases could begin this fall if prices remain high.<\/p>\n<p class=\"wp-block-paragraph\">\u201cIf inflation expectations do rise, this can result in workers demanding higher wages, potentially running the risk of a wage-price spiral developing, as was seen in 2021\/22,\u201d said Michael Brown, an independent market strategist in the United Kingdom. \u201cThe theory goes that, by raising rates, central banks can re-anchor inflation expectations and ensure such an eventuality doesn\u2019t come to pass.\u201d<\/p>\n<p class=\"wp-block-paragraph\">As central banks wait to make decisions on the future of interest rates, so do Americans.<\/p>\n<p class=\"wp-block-paragraph\">If the Fed increases rates, consumers will see tighter credit conditions and slower economic conditions in the short term \u2014 even as inflation goes down. Businesses would end up spending less money, while borrowers would end up paying more. That could exacerbate concerns about affordability, an issue that has been concerning Americans since 2021.<\/p>\n<p class=\"wp-block-paragraph\">Cochrane is worried that the current economic climate could eventually lead to a recession.<\/p>\n<p class=\"wp-block-paragraph\">\u201cIf we have to repeat 1979 \u2014 high inflation leads to a major rate rise causing a recession \u2014 then hard all around,\u201d he said.<\/p>\n<p class=\"wp-block-paragraph\">It\u2019s also a major test for new Fed Chairman Kevin Warsh. He\u2019s promised to deliver price stability but is facing competing pressure from the market and a White House that has lobbied for lower interest rates for more than a year.<\/p>\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4670031\/top-republican-housing-priorities-major-bipartisan-bill\/\"><strong>TOP REPUBLICAN OUTLINES HOUSING PRIORITIES AFTER MAJOR BIPARTISAN BILL<\/strong><\/a><\/p>\n<p class=\"wp-block-paragraph\">\u201cOne thing I am sure of is that this won\u2019t be the last test that Warsh faces during his term,\u201d Brown said.<\/p>\n<p class=\"wp-block-paragraph\">The Federal Open Market Committee isn\u2019t scheduled to meet until Sept. 15 and 16.<\/p>\n<p class=\"wp-block-paragraph\"><em>Taylor Millard is a freelance journalist who lives in Virginia. Follow him on X <\/em><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/TaylorMillard\"><em>@TaylorMillard<\/em><\/a><em>.<\/em><\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global inflation rises amid energy shocks and rate hikes<\/p>\n","protected":false},"author":3731,"featured_media":2644889,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/08\/BizCover.081926.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[34402,84144,5708,33477,38541],"class_list":["post-2644888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-economic-policy","tag-global-finance","tag-inflation","tag-interest-rates","tag-monetary-policy"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/08\/BizCover.081926.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2644888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3731"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2644888"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2644888\/revisions"}],"predecessor-version":[{"id":2644892,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2644888\/revisions\/2644892"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2644889"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2644888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2644888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2644888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}