Major central banks around the world are keeping interest rates the same. This is because inflation is still a problem. Geopolitical tensions in the Middle East also make inflation worse. The Bank of England decided to keep its interest rate at 3.75%. The US Federal Reserve did the same on Wednesday. People are waiting to hear what the European Central Bank will say. They also expect it to keep rates steady.
The Bank of England's committee voted unanimously to not change the interest rate. They are worried about inflation. High energy prices are making inflation worse. Economic growth is not very strong. Governor Andrew Bailey and his team are watching energy prices carefully. They think inflation will be higher than their 2% goal. Inflation may stay around 3% for a while. It could even go up to 3.5%. Slow economic growth also means the pound may not get stronger against the dollar.
In the United States, the Federal Reserve also kept interest rates the same. Rates are between 3.50% and 3.75%. Officials want to see more proof that inflation is going down. They will not lower rates until then. These two big central banks are working together. They want to control inflation globally.
China is doing something different. It wants to be sure of its energy supply. It also wants to control costs at home. China is producing more coal. It expects to produce 1.2% more coal by 2025. China is also storing more natural gas. However, demand for natural gas may not grow much. This is because of China's own economy. It also wants to rely on itself more. This affects energy markets around the world. The United States is also changing its energy policy. It is not only focused on drilling for oil. This is a complex choice. It balances cheap energy, industry, and energy power.