Rising energy prices are pushing central bank policy rates higher across major developed economies, with global trade relations coming into sharp focus ahead of this week’s meeting between Chinese President Xi Jinping and US President Donald Trump.

The increase in energy costs has prompted monetary authorities to maintain restrictive policy stances, according to analysis from Barclays Research, even as questions mount over the effectiveness of higher rates in cooling economic activity.

In the United States, elevated interest rates have had limited apparent effect on growth, raising questions about whether the traditional transmission mechanism of monetary policy has been disrupted. Analysts are examining whether structural changes in the economy have weakened the link between borrowing costs and spending decisions.

Debate continues among fixed income strategists over the extent to which government debt managers can influence long-term bond yields. Some argue that supply shifts or buyback programmes could lower yields, while others maintain that market forces ultimately determine pricing at the long end of the curve.

Separately, demand for software skills continues to rise despite market concerns about artificial intelligence disruption to the technology sector. Data science analysis of job postings indicates that employers are still seeking software expertise at increasing rates, suggesting fears of widespread displacement may be premature.