Global Perspectives on Inflation and Interest Rates

Policymakers around the world are grappling with rising inflation as disruptions caused by the pandemic continue to drive prices higher. Central banks have been raising interest rates in an attempt to control inflation, but there is a delicate balance between curbing prices and avoiding a major recession. Many central banks are focused on fighting stubbornly high inflation, as letting it persist for too long could make it more difficult to address. Inflation remains above target rates in major economies, and central banks are expected to continue raising rates to bring it under control.