Iran war pushes Bank of Japan toward policy tightening despite economic risks.
March 12, 2026. Fresh supply shocks from the Middle East conflict are accelerating the Bank of Japan's hawkish agenda, intensifying inflation risks. Four sources indicate another rate hike could come as early as April.
BOJ's focus is shifting from growth support to inflation control — a departure from its traditional priority. Market pricing reflects approximately 60% probability of an April move.
Underlying inflation already approaches 2%. Firms expect 2.4% inflation in five years. Households forecast 9.8% over the same period. Labor shortages are driving the largest wage increases in 34 years.
Governor Ueda warns the conflict could harm Japan's economy through worsening terms of trade, while also pushing up core inflation.
For investors: inflation pressure now trumps growth concerns as BOJ's primary driver. The April meeting will be critical.
#BOJ #Japan #Inflation #InterestRates #IranWar #Yen #MonetaryPolicy
„Die #Inflation in Deutschland lag im Februar trotz bereits anziehender #Kraftstoffpreise bei 1,9 Prozent, im Euroraum ebenso”, sagt unsere Geldpolitik-Expertin Silke Tober. Der Energiepreisschock durch den #Irankrieg ähnele auf den ersten Blick zwar dem, der durch den #Ukrainekrieg ausgelöst wurde. Er unterscheide sich aber massiv, erklärt Silke Tober von unserem @imk:
"Treasury’s borrowing showed no signs of slowing as the U.S. headed deeper into fiscal year 2026, with the Congressional Budget Office (CBO) reporting that another $1 trillion was added to the federal #deficit in the first five months of the year.
"The monthly budget review from the CBO, updated to February 2026 and released yesterday, showed that the government is estimated to have borrowed $308 billion last month alone." Fortune https://finance.yahoo.com/news/cannot-sustainable-u-borrowed-50-145204511.html
#USPolitics #Inflation #Affordabiity
If you don’t follow the price of oil, not to worry.
Please allow me:
The price of oil has risen another $19 today driving the price to more than $109 per barrel.
No pun intended, but the only trickle down effect that will come from the sharp rise of oil will be the cost of food, goods and services.
We can thank #trump and the #republicans for the #economic chaos that America is about to endure.
#iran #war #oil #republicansdidthis #inflation #economy #news #worldnews #MAGA
Subscribe to #inflation entries via RSS feed