By Chelsey Dulaney
Central bankers from Washington to Tokyo this week laid bare how surging energy prices sparked by the Middle East conflict are threatening the global economy.
Policymakers from the Federal Reserve, European Central Bank and Bank of Japan left interest rates unchanged at policy meetings (a rate hike in Australia bucked the trend). But they largely agreed that the energy crisis will drive up inflation and hurt growth.
-- : "Higher energy prices will push up overall inflation, but it is too soon to know the scope and duration of the potential effects on the economy."
-- : "The war in the Middle East has made the outlook significantly more uncertain, creating upside risks for inflation and downside risks for economic growth."
-- : "I will be monitoring developments extremely closely and stand ready to act as necessary to ensure inflation remains on track to meet the 2% target."
-- : "If we do not act, these price pressures will spread and the eventual adjustment will be harder."
-- indicated that the bank remains on a path toward more monetary tightening. Ueda said the bank will pay close attention to the possibility that higher energy costs accelerate underlying inflation.
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(END) Dow Jones Newswires
March 20, 2026 07:22 ET (11:22 GMT)
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