Central bankers in countries accounting for 40% of the global economy are grappling with uncertainty around trade and conflict in the Middle East as they prepare to set interest rates this week.
The US Federal Reserve, Bank of Japan, and Bank of England are expected to hold rates steady while Swedish and Swiss officials are set to deliver small reductions, a sign that officials worldwide are waiting for more information before taking definitive action.
The sudden conflagration between Israel and Iran has sent oil prices higher, but Washington’s tariffs — which could increase after a 90-day moratorium expires next month — are likely to raise prices within the US and depress them abroad, while also slowing growth worldwide.
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