Archive · 13 Sep 2026
Warsh and G7 Central Banks Face Renewed Inflation Test
Several major central banks are deciding this week whether to raise interest rates.
The US Federal Reserve is expected to increase rates because inflation was higher than experts predicted.
This could happen even though President Donald Trump reportedly prefers a different approach.
The Bank of England will probably keep rates unchanged for now, but it might raise them in November.
Japan’s central bank is also expected to raise rates because wages and other economic data have improved.
Higher oil prices and renewed fighting in the Middle East could make many products more expensive.
The European Central Bank has already raised rates, and Canada is also watching inflation closely.
Investors will also follow economic news from China, India, Brazil and several other countries.
The Federal Reserve is widely expected to raise rates after hotter-than-expected core inflation data.
The Bank of England is expected to hold rates Thursday, though a November hike remains possible.
The Bank of Japan is predicted to raise its policy rate to 1.25%, the highest since 1995.
Oil prices above $100 a barrel and renewed Middle East conflict are intensifying global inflation concerns.
Investors will also watch the European Central Bank, Bank of Canada, China, Brazil and other economies for policy and economic signals.
- Who
- The Federal Reserve, Bank of England, Bank of Japan, European Central Bank and other central banks; Kevin Warsh and Donald Trump are central to the US debate.
- What
- Major central banks face interest-rate decisions and renewed pressure to tighten policy as inflation risks increase.
- When
- The decisions begin Wednesday and continue through the week of September 14, 2026; the articles were published September 13, 2026.
- Where
- The policy decisions and related economic data cover the United States, United Kingdom, Japan, Europe, Canada and other global economies.
- Why
- Higher-than-expected inflation, oil prices above $100 a barrel and renewed Middle East conflict are increasing concerns about further price pressures.
Rate-hike advocates
Cautious or opposing voices
Federal Reserve decision
Rate-hike advocates
Investors, economists and some Federal Reserve officials support an increase because the latest core inflation data offered little evidence that inflation is moving toward the target quickly enough.
Cautious or opposing voices
Donald Trump is described as opposing the expected increase; keeping rates unchanged would avoid an immediate rise in borrowing costs.
Bank of England timing
Rate-hike advocates
Persistent price pressures and the three officials who favored a July increase could support a rate hike as soon as November.
Cautious or opposing voices
The Bank of England is expected to hold rates this week, suggesting policymakers may prefer to wait for more evidence before tightening.
Global monetary policy
Rate-hike advocates
Recent or expected increases by the European Central Bank, Federal Reserve and Bank of Japan could produce a more synchronized hawkish stance across major economies.
Cautious or opposing voices
The Bank of England, Bank of Canada and Czech officials are expected to hold rates while assessing inflation and economic conditions; Brazil is expected to cut rates.
- US rate outlook
- Investors and economists view a Federal Reserve rate increase as highly likely after stronger-than-expected core inflation data.
- US policy milestone
- A hike would be the first increase by the US central bank in three years.
- Japan rate outlook
- The Bank of Japan is widely expected to raise its policy rate to 1.25%.
- Japan rate milestone
- A move to 1.25% would be the highest Japanese policy rate since 1995.
- UK outlook
- The Bank of England is not expected to raise rates this week, though a November increase remains possible.
- Global inflation pressure
- Oil prices have moved above $100 a barrel as the Middle East conflict appears to be intensifying.
- Brazil outlook
- Analysts and traders expect Brazil’s central bank to make a fifth consecutive quarter-point cut, taking the Selic rate to 13.75%.
