Central banks face interest rate dilemma as inflation rises amid Middle East tensions and slowing growth

Source Summary

The Federal Reserve, European Central Bank, and Bank of England face uncertainty on how to address inflation as Middle East tensions threaten to raise oil prices. Despite inflation rates falling across industrialised nations, central banks remain hesitant to raise interest rates, partly due to criticism over their delayed response in 2022 when inflation exceeded 10% in the UK and eurozone and over 9% in the US. Rising energy bills are contributing to a new UK cost of living crisis.