Central Banks Scramble as War Drives Up Inflation Expectations

Energy shocks rarely remain confined to energy markets. They propagate through bond markets, fiscal balances and inflation expectations, says Helen Thomas As Winston Churchill once warned: “The statesman who yields to war fever must realise that once the signal is given he is no longer the master of policy, but the slave of unforeseeable and uncontrollable events.” The conflict in Iran is already affecting global markets. Oil prices have surged, bond yields are rising and traders are rapidly reassessing the outlook for inflation and…