Central banks raise interest rates to combat inflation

Major central banks are moving toward tighter monetary policies to combat inflation. The Federal Reserve is expected to implement a quarter-point interest rate increase, with market attention focused on whether this tightening trend will continue through the end of the year. Similarly, the Bank of Japan is preparing to follow the trajectory set by the U.S. central bank.

In Europe, the European Central Bank has raised benchmark interest rates by 25 basis points. This includes a deposit rate increase to 2.50%, with main and marginal refinancing rates reaching 2.65% and 2.90%, respectively.

Italian business representatives, specifically the CNA, have expressed concerns that these hikes could stifle economic recovery. They argue that while controlling inflation is necessary, the current price increases are largely driven by energy costs rather than monetary factors. The CNA warns that higher credit costs may disproportionately impact small and medium-sized enterprises and households, potentially hindering investments in innovation, digitalization, and energy efficiency.