Iran Conflict Renews Central Bank Rate Hike Bets on Inflation WorriesCentral Banks Respond to Inflation Risks Amid Iran ConflictBy Francesco Canepa and Balazs KoranyiFRANKFURT, March 9 (Reuters) - Central banks across Europe came under market pressure on Monday to lift interest rates as the war in Iran drove up energy costs and revived the spectre of another inflation wave. Money markets ramped up bets on rate increases by the European Central Bank, the Swiss National Bank and Sweden's Riksbank before year-end, with the Bank of England seen following suit in 2027. Asian central banks were also seen shelving plans to cut or even consider hikes. Most European central banks were late to raise rates four years ago when Russia's invasion of Ukraine unleashed an energy shock that quickly spilled over into broader consumer prices. Upcoming Central Bank Meetings and Market ExpectationsThe ECB was seen raising rates once by June or July and most likely again by December, money-markets data showed.

Source: The Guardian March 09, 2026 23:49 UTC