Higher Oil Price Reduces Scope for Central Banks to Cut Rates
Dow Jones07-08 22:50
Rising oil prices could drive up inflation concerns, reducing the possibility of central banks cutting interest rates to support their economies, eToro's Lale Akoner says.
President Trump on Wednesday said that the Iran ceasefire is over, causing oil prices to jump. "The ceasefire had helped contain some of the risk premium in oil; its collapse puts energy prices back at the centre of the market outlook," Akoner says. "If oil keeps rising, central banks may have less room to soften their policy stance," she says, adding that bond yields could consequently rise further.
Brent crude rises 7.4% to $76.68 while 10-year U.S. Treasury yields rise to a 6-week high of 4.593%, Tradeweb data show.
(END) Dow Jones Newswires
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