RBNZ Chief Economist Conway says Middle East conflict complicates monetary policy like all supply shocks, adds understanding how firms respond to cost shocks is crucial in maintaining low and stable inflation
Newsquawk Staff ·
Says
- Despite easing prices, the effects of the shock are expected to continue impacting the economy for some time.
- Monetary policy can prevent initial price effects from becoming secondary inflation pressure.
- Medium-term inflation expectations remain well anchored, which should help limit pass-through.
- Further reduction in monetary stimulus is likely to be required.
- Newsquawk European Market Wrap - 21st October 2026
- US EQUITY OPEN: Indices in the green underpinned by SPCX & SMCI as Mag-7 earnings await after-hours
- ECB's Kazaks says that some more policy tightening might be necessary if inflation continues to reside above target; recent rise in yields has already tightened financing conditions, Econostream reports
- BoJ's Himino says upside inflation risks remain high, warning that delays in adjusting monetary policy could allow inflation risks to materialise and harm the economy.
- BoJ is expected to assess whether underlying inflation has reached its 2% target at its October 29th-30th policy meeting, while keeping interest rates unchanged at around 1.25%, Kyodo reports
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