By Chelsey Dulaney
Energy disruptions from the Middle East have dramatically upended investors' expectations for central-bank policy this year. Investors have abandoned bets that the Fed will cut rates and moved to price in multiple rate-hikes from central banks across Europe.
Investors are now pricing in almost four rate increases by the European Central Bank and Bank of England this year, according to LSEG data. Before the conflict, the ECB was expected to hold rates steady while the BOE was expected to cut twice in 2026.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
March 23, 2026 11:31 ET (15:31 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments