Central Banks’ Dilemma on Iran War Inflation: Look Through or Act Fast
Australia’s and New Zealand’s central bank chiefs outline alternative approaches to dealing with inflation pressures.
A semi truck driver replaces a diesel fuel pump at a Love’s gas station in Eloy, Arizona on March 18.
Photographer: Rebecca Noble/Bloomberg
I’m Malcolm Scott , international economics editor in Sydney. Today we’re looking at central bank approaches to inflation pressures stemming from the Iran War. Send us feedback and tips to ecodaily@bloomberg.net . And if you aren’t yet signed up to receive this newsletter, you can do so here .
Armed with only the bluntest of instruments, central banks have just two options when it comes to responding to inflation pressures stemming from the war in Iran: look through them or act quickly to snuff them out.