LONDON—World stocks were stuck near one-month lows and government bond markets came under fresh selling pressure on Friday, a day after a slew of central banks jacked up interest rates and signaled that the fight to tame inflation was not over yet.
Interest rates went up in the euro area, Britain, Switzerland, Denmark, Norway, Mexico, and Taiwan on Thursday, following a U.S. rate hike a day before, and central bankers vowed to keep raising rates to bring down prices.
This week’s hawkish message from the likes of the European Central Bank and the Federal Reserve brought an abrupt end to optimism that peak interest rates are on the horizon….