Interest rates

Central banks stand ready to tackle war-led inflation

[LONDON] Top central banks said on Thursday they stood ready to tackle any surge in inflation with tighter policy, as an escalation in the Iran war put the Middle East’s vital energy infrastructure in...

Financial markets now expect eurozone inflation to climb close to 4 per cent over the next year, then take years to return to the ECB’s 2 per cent target.

ECB keeps rates on hold as Iran war clouds outlook

It’s monitoring the war and its impact on inflation, both including and excluding energy prices, and growth

BOJ governor Kazuo Ueda says: “Before the Middle East conflict, household and corporate activity had been firm. The government’s stimulus measures will likely underpin the economy."

BOJ holds rates steady, warns of Iran war impact on inflation

Two hawkish board members dissent to the central bank’s projection on how soon inflation may durably hit its target

Analysts have shifted the debate from when the Federal Reserve will cut rates to if it would do so at all.

Oil surges past US$110, rattling Asia markets and clouding Fed rate-cut outlook

Analysts delay their rate-cut forecasts, concerned over sticky inflation amid higher energy prices

Jerome Powell, whose last meeting as Fed chair comes at the end of April, sounded weary as he delineated the shocks that he has steered the US central bank through.
NEWS ANALYSIS

Fed will wait out war, monitor oil shock impact before acting on interest rates

The US central bank hinted that it may not cut rates until the fog from the Iran war has cleared

The Fed is in the difficult position of needing to balance the risk of higher inflation amid a fresh shock and downside risks to the labour market, says Powell.

US Fed leaves interest rates unchanged, expects inflation to rise

Oil prices have jumped from below US$80 a barrel to US$108 ahead of the central bank’s policy decision

The rate has been steady since October, and the central bank omitted previously used language about seeking room to lower borrowing costs.

Indonesia tightens rules on dollar-buying as war spurs outflows

The monetary authority also needs to closely monitor inflationary pressures

Bank Indonesia cut the benchmark rate by a total of 150 basis points between September 2024 and September 2025.

Indonesian central bank holds rates steady, as expected

The bank also keeps steady its overnight deposit and lending facility rates at 3.75% and 5.50%

Investors will focus on Governor Kazuo Ueda’s (pictured) post-meeting briefing for clues on the next rate-hike timing.

Bank of Japan likely to stand pat as Iran war muddles outlook, sustain rate-hike bias

The central bank is set to maintain short-term interest rates of 0.75 per cent