Rate Hikes Echo Around the World as Inflation Proves Unrelenting

Central bankers’ mounting concern that inflation remains undefeated is locking them into a new phase of monetary constriction on economies already jolted by a year or more of interest-rate hikes.

Summer’s official start in the northern hemisphere this week coincided with a UK report showing alarmingly stubborn price gains and Federal Reserve Chair Jerome Powell’s warning that another two increases in borrowing costs may well be needed.

Within hours of that outlook from the Fed, both the Bank of England and its Norwegian counterpart each accelerated their tightening with half-point rate moves on Thursday, and promised more to come. Swiss officials showed they’re not ready to call time on monetary action either, even with inflation near 2%.