U.S. stocks flat to lower in early trading
Bank of England surprises investors with halfpoint rate hike
Oil prices down sharply

NEW YORK, June 22 Reuters The U.S. dollar and Treasury yields climbed on Thursday as Federal Reserve Chair Jerome Powell suggested more U.S. interest rate hikes may be needed and the Bank of England delivered a biggerthanexpected rate hike.

Global stock indexes were mostly lower.

The Swiss National Bank SNB and Norges Bank also hiked their benchmark rates, underscoring worries about global inflation.

The Bank of England announced a halfpoint rate hike to 5. Though the size of the hike surprised markets, expectations for BoE rate tightening have surged in recent days.

Before Thursday39;s decision investors expected the BoE39;s Bank Rate to peak at 6 by the end of the year. By contrast, economists polled by Reuters last week saw a 5 peak.

Powell, in his second day of testimony to lawmakers, said a strong majority of the central bank committee feels there is a little further to go with rate hikes.

Investors need to recognize the reality that central banks around the world are going to continue to fight inflation aggressively, said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut.

Last week, the Fed held its benchmark interest rate steady at between 5 and 5.25, but investors have been expecting rate hikes to resume.

On Wednesday, Powell said in remarks to lawmakers in Washington that…