Can central banks reduce inflation as energy prices rise? | | Business and Economy

In the midst of high inflation and slow growth, the United States Federal Reserve, the European Central Bank and the Bank of England are keeping interest rates and borrowing costs low.

This is despite the fact that the rising cost of electricity, fuel and food is taking a toll on businesses and families around the world.

The International Monetary Fund is warning of a global recession, and no one knows when the energy shock caused by the US-Israel war in Iran will end.

The impact will be felt most acutely in emerging markets and developing countries. Central banks face a difficult choice: fight inflation or support a recession.