# Global Markets Face Volatility as Central Banks Pivot to Rate Hikes Political shifts in the US and persistent inflation trigger a global monetary tightening cycle. - **Source:** [Bankier.pl](https://www.bankier.pl) - **Published:** 2026-11-07 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/d6102f3c-7b67-43d6-9f90-ba02a326a9a4 ## Market Panic and Sell-offs Global markets experienced a sharp sell-off this week, driven by political instability in the United States. Investors fear that a new Congressional majority may restrict artificial intelligence data center expansion. Asian exchanges in Seoul and Tokyo plummeted nearly 6%, while oil prices recorded their largest weekly decline since the 2020 pandemic. ## Global Monetary Tightening Cycle Central banks worldwide are aggressively raising interest rates to combat stubborn inflation. The Reserve Bank of Australia reached an 18-year high, while the Riksbank and the Bank of England also implemented hikes. These actions reflect a coordinated global response to inflationary pressures, which are currently being exacerbated by conflicts in the Middle East. ## Eurozone Inflation Hits Peak Inflation in the eurozone reached 4% in October, marking the highest level in over three years. This figure is double the official target set by the European Central Bank. The persistent rise in consumer prices suggests that current monetary policies are struggling to contain the inflationary surge across the entire European currency bloc. ## Polish Economic Discrepancies While average wages in Poland reached 9,100 PLN in May, half of the workforce earns 7,550 PLN or less. Recent data from the Central Statistical Office highlights significant disparities based on gender, company size, and industry. Despite rising wages, the broader economy shows mixed signals, with industry attempting to recover without clear growth. ## Monetary Policy Stagnation in Poland The Monetary Policy Council has maintained interest rates at current levels, despite CPI inflation consistently exceeding the National Bank of Poland's target. Polish credit remains at its cheapest level in over four years. This stance contrasts sharply with the Czech Republic, which recently implemented its second rate hike of the year. ## Manufacturing Sector Fragility The Polish manufacturing PMI reached its highest value in 18 months, hovering at the threshold of recovery. However, analysts describe the current foundation as fragile, indicating that a robust economic expansion is not yet underway. The index suggests a lukewarm outlook, reflecting ongoing challenges within the domestic industrial production and manufacturing sectors. ## Energy Price Volatility November brought relief to drivers as gasoline prices dropped to their lowest level since June, with diesel falling below 8 PLN per liter. Conversely, LPG prices surged, exceeding 4 PLN per liter for the first time in history. These shifting fuel costs reflect broader energy market volatility impacting domestic consumer retail prices. ## Corporate Market Corrections Orlen shares plummeted during Friday's session following a disappointing earnings report, pushing the stock into technical bear market territory. Other companies, including Dino and Grupa Azoty, also saw significant declines. Investors reacted aggressively to the failure of these firms to meet market expectations, signaling a broader period of corporate valuation adjustments. ## Sources covering this story - https://www.bankier.pl/wiadomosc/Panika-i-zaskoczenie-na-rynkach-a-swiat-wraca-do-podwyzek-stop-9223540.html?utm_source=RSS&utm_medium=RSS&utm_campaign=Wiadomosci — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._