RIYADH: Global central banks, from Washington to London to Jakarta, are expected to conduct their first assessments of the economic damage after more than two weeks of conflict between the US and Iran.
Decisions expected over the coming week, covering all members of the Group of Seven and eight regions among the world’s 10 most-traded currencies, are likely to confirm to investors that the specter of a new inflation shock has become concerning enough to push monetary policymakers toward greater caution.
Disruptions to global supply chains ignite stagflation risks
Markets have scaled back bets on US interest-rate cuts while beginning to price in possible rate increases in the UK and the eurozone later this year, prompting policymakers to clarify whether such expectations are justified.
Bloomberg Economics view:
