Business
Central banks weigh rate moves as Middle East energy shock keeps inflation elevated
September 11, 2026 at 03:29 AM · Updated 35d ago
Coverage
9 reports · 6 in Arabic, 3 in English · over 20 hours
The European Central Bank raised rates to 2.5% while the US Federal Reserve and Bank of England weigh decisions next week as war-driven energy prices keep inflation elevated.
- The European Central Bank has raised interest rates to 2.5%, citing inflation set to remain well above its 2% target.
- The IMF said the energy shock from the war had not ended after six months, and cut its 2026 growth forecast to 3% from a 3.5% average.
- Fed Chair Kevin Warsh said the central bank's focus should be on slowing price rises, with Deutsche Bank economists calling a rate hike the most likely outcome.
- The IMF said global public debt is approaching 100% of GDP, the highest level since World War II.
Latest developments
- Sep 11 — A global bond selloff has pushed the US 10-year Treasury yield to 4.97%, its highest since late 2023 and near the 5% threshold, as Brent crude surged above $100.
- Sep 11 — Gold rebounded 0.6% to $4,342 an ounce on Friday after a 2% drop.
- Sep 11 — The US 10-year Treasury yield hit 4.979%, its highest in about three years, and Brent crude rose to a four-month high near $110 a barrel.
- Sep 11 — Investors see a 67% probability of a Federal Reserve rate hike at its next meeting, and the Bank of Japan is expected to raise rates by 25 basis points next week.






