A Global Assault on Inflation

From Ankara to Washington, central banks are hiking rates -- and investors are spooked. What lies ahead?

For many market observers, June 8 seemed to be World Tightening Day. The European Central Bank raised its benchmark interest rate by 25 basis points, to 2.75%, as expected. But in a surprise move, South Korea's central bank hiked its key interest 25 basis points, too, to 4.25%. Central banks in Denmark, India, South Africa, and Turkey raised rates as well.

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