It appears that the tide is turning on global interest rates.
As consumer prices soar to an eleven-year high of 4.2 percent, it is not only the Bank of England feeling the heat. The Federal Reserve and European Central Bank are also experiencing the heat.
Pandemic-induced fiscal tightening, monetary relaxation and market bubbles are all radically changing the economy’s landscape. It is difficult to imagine the Bank of England refusing to raise the interest rate as early as December in the United Kingdom.

Rates rising: Not just the Bank of England is suffering as consumer prices rise to an 11-year high of 4.2%, but also the Federal Reserve Bank and the European Central Bank.
Surprisingly, the US mood has changed. Wall Street, as well as the Fed, have believed that normalizing the interest rate from extremely low levels would be delayed until the central banking completes their bond-buying programme next year.
What has changed is the runaway recovery of the G7’s most resilient economy and the outsized inflation it brings with it.
The US is heading for the fastest growth in a generation, retailers’ sales are booming, wages to the lowest-paid workers are soaring, hiring of new employees is surging and many household bank balances are flush.
There is impatience about the Fed’s unwillingness to withdraw the punchbowl. James Gorman from Morgan Stanley, the New York Fed’s boss, believes it is now time for the Fed to stop the delays.
New York bankers believe that Jay Powell, the Republican Fed chairman, is holding off on raising rates because he wants President Joe Biden convinced that he’s willing to take the initiative and be reappointed for a second term.
The irony is that the growth take-off is hurting rather than helping the president because the public doesn’t like the runaway prices.
The dissonance between the Fed and the President could allow the president to nominate Lael brainard, a Democrat economist who was interviewed as the other candidate.
There is also blowback against Christine Lagarde’s money printing and super-low interest rate regime at the European Central Bank (ECB).
Isabel Schnabel, a member of the German ECB Board warns against inflation at 4.1 percent in eurozone. The bank should be prepared to control the living costs.
The central bank has removed transitory inflation from its lexicon. It is now necessary to control the price tiger.
That could have serious consequences for the already overexuberant financial market.
Boarders repelled
Companies boards have suffered for too long from the grip of activists, who often have little more than shares and derivatives rented at large battalion institution.
Too many corporate boards remain complacent. Agents of change are needed.
It would be much better for the enterprise owners to initiate the activism, rather than the get-rich quick financiers.
Although the power company SSE might not be very popular during these times of rising energy prices, it has been a constant nuisance to Paul Singer.
In the wake of COP26, the decision to invest £12.5billion in renewable capacity by 2026 has to be applauded.
This is a model for other large energy utilities. It is disappointing that the vision does not reap rewards. In recent trading, SSE shares fell by 4.3 percent.
SSE is not alone in keeping the activists away from FTSE 100 companies.
Emma Walmsley, the chief executive of Glaxosmithkline, does an admirable job in managing things her own way. There are new treatments emerging fast, such as a breakthrough for HIV. When the company is split up, its consumer healthcare enterprise will be valued at a much greater level than was originally anticipated.
Jes Staley’s stewardship at Barclays ended in tawdry fashion and a row over his pay. However, his unwavering pursuit of the investment banking dollars was able to overcome the New York-based activist Ed Bramson.
It could become a fashion trend.
Digital divide
If there was doubt as to where the real power now lies in global commerce the issue has been clarified by Amazon’s decision to sack the US card giant Visa – sending its shares skidding.
Silicon Valley titans are the biggest threat to traditional finance.
They’re starting to exercise their muscles.