Global central banks raise interest rates to combat sticky inflation

“Alright, so Wendy and I talked about the Fed. But the fact is, despite what you might hear here and elsewhere, Kevin Warsh and the gang are not the only central bank game in town. The European Central Bank raised its benchmark rate last week. The Bank of Japan is expected to follow suit with a rate hike this week, Friday, I think. The Bank of England might be the outlier, best guesses are they'll hold rates steady when it meets later this week. But this is, broadly speaking, a hawkish moment. Inflation fighting through higher interest rates, globally.”

“Almost everyone leaning towards some kind of hawkishness. It amounts to a kind of regime change for the international economy, says Joe Brusuelas at consulting firm RSM.”

“That means that long period of low inflation and low interest rates is come to an end. And central banks are going to have to address the risks surrounding inflation with higher interest rates.”