Interest rate dilemma for central banks as inflation rises but growth slows

The Federal Reserve, the ECB and the Bank of England appear unclear on how to tackle inflation amid the Iran war New UK cost of living crisis looms as rising energy bills lift inflation Inflation rates have been falling across the industrialised world, but fears that the Middle East war will raise oil prices means central banks are sitting on their hands when they should be raising interest rates to subdue inflationary pressures. The US Federal Reserve, the Bank of England and the European Central Bank are still smarting from the criticism of their inaction in 2022 when inflation soared above 10% in the UK and eurozone, and over 9% in the US. Continue reading...

Phillip Inman · Sun, Aug 16, 2026, 7:00 AM
US news | The Guardian

Interest rate dilemma for central banks as inflation rises but growth slows

The Federal Reserve, the ECB and the Bank of England appear unclear on how to tackle inflation amid the Iran war

New UK cost of living crisis looms as rising energy bills lift inflation

Inflation rates have been falling across the industrialised world, but fears that the Middle East war will raise oil prices means central banks are sitting on their hands when they should be raising interest rates to subdue inflationary pressures.

The US Federal Reserve, the Bank of England and the European Central Bank are still smarting from the criticism of their inaction in 2022 when inflation soared above 10% in the UK and eurozone, and over 9% in the US.

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