Markets Brace for Inflation Risk as Energy Shock Tests Central Banks
Global markets head into a new session with inflation risks amplified by energy prices amid Middle East tensions. The Bank of Japan kept rates steady but signaled ongoing price pressures, while expectations grow that the ECB and BoE will also hold, keeping a tough stance on inflation. Traders have turned cautious, oil sits above $100 a barrel, natural gas rallies, and the yen approaches intervention levels as investors await policy comments on growth and policy paths.