Central banks from around the world will hold interest rate policy meetings this week. However, due to the trade disruptions caused by U.S. President Trump and the outbreak of conflicts in the Middle East last week, various parties are beginning to assess the impact on future inflation.
Officials from many countries are on guard, continuously evaluating the risks that tariffs and intermittent trade relations pose to inflation and economic growth. The renewed tensions in the Middle East last week have compounded their concerns. According to economists quoted by Bloomberg, Israel's attacks on Iranian nuclear facilities may delay the Federal Reserve's rate-cutting timeline, while they await any potential impacts on inflation.