Global central banks talk harsh new economic realities in Tokyo
From Yahoo Finance: 2025-05-26 04:06:00
Global central bankers gather in Tokyo to address economic growth and stubborn inflation at annual conference. Discussions will focus on monetary policy challenges, U.S. tariffs impact, and market volatility. Participants include officials from the Federal Reserve, ECB, Bank of Canada, and more. Previous unconventional easing tools and wage hike potential in Japan also on agenda.
Central banks face conflicting pressures from Trump’s policies, impacting rate decisions. U.S. Fed cautious on rate cuts due to tariff-induced inflation. ECB may pause rate cuts beyond June as inflation risks rise. BOJ balances domestic inflation and growth risks from tariffs, signaling readiness for rate hikes if inflation reaches 2% target.
Japan’s core consumer inflation spikes to 3.5% in April, highest in over two years, driven by surging food prices. BOJ’s struggle to achieve price stability highlighted as inflation concerns persist. Former BOJ official criticizes BOJ for being behind the curve in addressing rising domestic price pressures. Keynote speeches by BOJ Governor Ueda and BIS GM Carstens to kick off conference.
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