Central Banks Turn Hawkish as Oil Prices and Global Inflation Risks Mount
· Business · LiveMint, Bloomberg
Sixteen central banks raised benchmark interest rates during their September and October meetings to counter persistent inflationary pressures. The Reserve Bank of India increased its repo rate by 25 basis points and shifted its stance to calibrated tightening. Elevated crude prices, high public debt, and artificial intelligence infrastructure spending have driven the shift toward a higher-for-longer interest-rate environment. The World Bank projects global economic growth to slow to 2.5% in 2026, down from 2.9% in 2025. Crude prices have climbed to between $98 and $100 a barrel over a seven-month period.
Why it matters
Higher borrowing costs will increase loan EMIs for retail consumers and raise capital costs for businesses, while tighter monetary policies risk slowing global economic growth.
Read the original report — LiveMint
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