Rates to rise more, governors sayBloombergThe global economy and inflation have so far proved surprisingly resilient to a barrage of interest-rate increases, prompting top central bankers on Wednesday to promise more of the same. Meanwhile, Bailey vowed to do what was necessary to bring inflation back to 2 percent after the BOE surprised investors by boosting rates a half percentage point this month. Ueda was the odd one out, emphasizing that Japan’s rates are on hold because underlying inflation remains below 2 percent. Powell acknowledged that a recession was possible because of the Fed’s actions, though that is not his base case. Separately, Sweden’s central bank yeserday raised its key interest rate to its highest level in 15 years, as inflation remains too high.
