Many central banks around the world aim to keep interest rates high to fight inflation.

Interest rates on the world's most traded currencies, including the euro and the dollar, are expected to be adjusted next week. However, many experts believe that central banks will likely maintain high interest rates to fight inflation.

Specifically, at the US Federal Reserve (Fed) meeting last month, this issue was proposed once with the possibility of another Fed interest rate hike from now until the end of 2023 left open.

The Fed is still leaving open the possibility of another interest rate hike between now and the end of 2023 (Photo TL)

In addition, the European Central Bank (ECB) has just announced the difficulty in deciding whether to continue raising interest rates or not. However, regardless of the option chosen, the ECB said it will maintain tightening policies to control prices despite slowing economic growth.

After the ECB's announcement, investors around the world are turning their attention to the Fed's upcoming policy meeting scheduled for September 19 and 20, 2023. The outcome of this meeting will have a significant impact on the world economy as well as investors' decisions.

Fed officials have expressed optimism that they can contain inflation without causing serious damage to the global economy. As a result, investors expect the Fed to keep interest rates unchanged at its upcoming meeting, and economists agree that rates will stabilize after the Fed signaled a pause in rate hikes.

The focus of the Fed's upcoming meeting will be on its economic forecast, updating its forecast for another rate hike later this year and keeping rates at peak levels through 2024 to bring inflation back to its 2% target.

On the other hand, the Bank of England (BoE) is still expected to raise interest rates by another 25 basis points from September 21, 2023, marking the 14th interest rate hike and also the strongest interest rate hike cycle in the UK in recent years.

The BoE has expressed concern about inflation and the economic slowdown. However, BoE Governor Andrew Bailey said that interest rates are at the peak of the rate hike cycle, a sign that the BoE's rate hike momentum is slowing.

Source: https://www.congluan.vn/nhieu-ngan-hang-trung-uong-the-gioi-dat-muc-tieu-giu-lai-suat-cao-de-chong-lam-phat-post264375.html