G20: Interest Rates Need To Rise To Curb Prices
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

Central banks will need to raise interest rates further to contain inflation even as global growth cools, policy makers from the world’s 20 largest economies said.
“Faced with potential inflationary pressures, the normalization of monetary policy underway in many G-20 countries will need to continue,” the Group of 20 central bankers and finance ministers said in a statement in Melbourne. “Global economic growth is expected to slow slightly from the rapid pace of the past few years.”
The fastest period of global growth in three decades is stretching production, encouraging companies to raise prices and workers to demand higher wages. The G-20 also called for more flexible currencies and a revival of the Doha trade talks to ensure growth is more evenly spread around the world.
“All central banks are on inflation alert,” the interest rate strategist at Macquarie Bank Ltd. in Sydney, Rory Robertson, said. “They are being vigilant because economies are moving toward high utilization rates and lower unemployment.”
The U.S. Federal Reserve raised its key rate 17 times before pausing in August at 5.25% amid signs growth was slowing.
The European Central Bank is poised to deliver its sixth increase in a year next month, taking its benchmark rate to 3.5%. Central banks in Japan, China, Australia, and Britain may also raise rates.