Central banks can increase risk by raising interest rates together

Central banks around the world are raising their key interest rates in the most widespread monetary policy tightening ever. Some economists fear they could go too far if they don’t take into account their overall impact on global demand.

According to the World Bank, the number of rate hikes announced by central banks around the world was the highest in July since records began in the early 1970s. On Wednesday, the Federal Reserve delivered its third increase of 0.75 percentage points in as many meetings. In the last week, the counterparts in Indonesia, Norway, the Philippines, South Africa, Sweden, Switzerland, Taiwan and the United Kingdom have also increased their prices.