Surging inflation puts interest rates back in focus as policymakers meet in Japan, US and UK
Guardian AU Business
β’Sun, 13 Sep 2026 12:33:16 GMT
π° What Happened
Central banks in the US, Japan and the UK will set interest rates this week as inflation rises. Investors will watch whether the new US Federal Reserve chair, Kevin Warsh, resists Donald Trump's calls for cuts and instead pushes for a rise on Wednesday. Trump has said the US should have the lowest rate of any country in the world.
π The Backstory
Oil prices surged past $100 a barrel last week for the first time since July, as the Strait of Hormuz stayed almost closed to tankers and Houthi rebels advanced along the Red Sea coast. US inflation was 3.4 percent in the latest figures, above the Fed's 2 percent target for more than five years. Markets expect the Bank of England to hold rates at 3.75 percent on Thursday.
π― Why It Matters
Interest rates decide what you pay on a mortgage, a car loan or a credit card. Higher rates also slow hiring and business spending.
Central banks in the US, Japan and the UK will set interest rates this week as inflation rises. Investors will watch whether the new US Federal Reserve chair, Kevin Warsh, resists Donald Trump's calls for cuts and instead pushes for a rise on Wednesday. Trump has said the US should have the lowest rate of any country in the world.
Oil prices surged past $100 a barrel last week for the first time since July, as the Strait of Hormuz stayed almost closed to tankers and Houthi rebels advanced along the Red Sea coast. US inflation was 3.4 percent in the latest figures, above the Fed's 2 percent target for more than five years. Markets expect the Bank of England to hold rates at 3.75 percent on Thursday.
Interest rates decide what you pay on a mortgage, a car loan or a credit card. Higher rates also slow hiring and business spending.