G7 Central Banks Face $100 Oil Inflation Test in 3 Rate Decisions
Updated
Updated · Bloomberg · Jul 26
G7 Central Banks Face $100 Oil Inflation Test in 3 Rate Decisions
3 articles · Updated · Bloomberg · Jul 26
Summary
$100-a-barrel oil is set to dominate three G7 rate decisions this week, starting with the Federal Reserve on Wednesday and followed by the Bank of England and Bank of Japan.
Central bankers are expected to signal how seriously they view renewed energy-driven inflation, even though none is currently forecast to change policy because of the oil move alone.
Washington, London and Tokyo may show different degrees of vigilance, offering investors an early read on how resilient each economy's inflation outlook is to another commodity shock.
The meetings will test whether a rebound in oil can complicate the broader path of easing or steady rates across major advanced economies.