LONDON/FRANKFURT – Top central banks have said they stand ready to tackle any surge in inflation with tighter policy as the latest escalation in the U.S.-Israeli war on Iran puts the Middle East’s vital energy infrastructure in the line of fire, pushing fuel prices higher.
In a rare coincidence of the monetary policy diary, central banks of the United States, Japan, Britain, Canada and the euro zone — effectively the Group of Seven (G7) nations — convened this week, as have counterparts from several emerging economies.
After facing criticism they acted too late to tame a post-pandemic jump in inflation exacerbated by the Russian invasion of Ukraine in 2022, policymakers are determined to rein ?in prices without ?derailing still-patchy economic growth — and above all to avoid a “stagflation” mix of recession and price surges.
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