Stories

Thu, 10 Sep 2026

Thu, 10 Sep 2026 Are interest rates on the way up again?

As countries grapple with energy costs pushing up inflation, this month will see how central banks respond.

* Surging oil prices have pushed up fuel costs and household budgets, with inflation concerns over the US-Iran war.
* The European Central Bank raised interest rates to 2.5% due to Middle East conflict and inflation above target.
* Other central banks, including the US Federal Reserve, are expected to make interest-rate decisions soon.
* Many on Wall Street bet on a rate hike in the US this month due to strong jobs market and oil price expectations.
* Economists disagree on whether rates will rise or stay steady, but a rate cut appears unlikely.
* President Trump pressed for lower rates, tweeting "The Fed Board... must get smart - BE PATRIOTS for a change".
* Higher energy prices can make transporting goods more expensive, leading to steeper prices for food and other staples.
* Central banks try to limit price rises with higher interest rates by slowing consumer spending and inflation.
* The Bank of England is expected to leave rates at 3.75% despite predictions of higher inflation in the UK.
* Inflation in the UK is currently 2.9%, but it's expected to jump in coming months due to energy price hikes.