Global Markets Tumble as Central Banks Raise Interest Rates and Inflation Fears Grow

Asian shares fell sharply on Friday as several central banks around the world raised interest rates to fight inflation. Japan reported a higher-than-expected inflation rate, adding to expectations that the Bank of Japan might adjust its policies to reflect upward price pressures. The Bank of England hiked its main interest rate by a bigger margin than expected to a 15-year high. Central banks in Norway, Switzerland, and Turkey also raised borrowing rates. The strategy risks going too far in stalling growth and dragging economies into a recession.