Central Banks

ECB and BOE Edge Toward Rate Hikes as Energy Turmoil Deepens

Andrew Bailey, left, and Christine Lagarde

Photographer: Chris Ratcliffe; Liesa Johannssen/Bloomberg

As oil prices briefly came within reach of $130 a barrel, the mood music among central bankers in Frankfurt and London shifted in a more hawkish direction on Thursday.

The European Central Bank and Bank of England edged toward interest-rate hikes that could be delivered as soon as June to head off the threat from a resurgence in inflation triggered by the Middle East conflict.