World Economy

Central Banks Signal Readiness to Raise Rates as Inflation Pressures Persist

Monetary policymakers across major economies are reversing course on interest rate cuts as inflation concerns mount. Bank of England Deputy Governor Dave Ramsden said he stands ready to increase borrowing costs if upside price pressures intensify. Australia's central bank is expected to resume rate hikes this week as officials grow impatient with persistent inflation. Philadelphia Federal Reserve policymaker Anna Paulson indicated that modest rate increases may be necessary to bring inflation back to target. JPMorgan Chase forecasts Thailand's central bank will deliver three rate hikes in 2027, diverging sharply from consensus expectations. U.S. Treasury Secretary Scott Bessent urged Federal Reserve officials to maintain flexibility on rate decisions, citing productivity gains as a moderating force on inflation. Central banks are departing from the loose monetary policies that dominated recent years.