#energy shock

The post BoJ’s Masu warns Iran war energy shock could hit Japan harder than 1973 oil crisis appeared on BitcoinEthereumNews.com. Bank of Japan (BoJ) policy board member Kazuyuki Masu said on Thursday that the impact of Iran war-driven energy shock on Japan’s economy may be more severe than 1973 oil crisis, risk requires attention. Key quotes Impact of Iran war-driven energy shock on Japan’s economy could be more serious than the first oil sock in 1973, a risk that warrants attention. Rising personnel expenses, distribution costs and impact of weak yen are elements forming basis for Japan’s inflation. From a long-term perspective, the price of food in general is a key determinant of future inflation. Given Japan is no longer in deflationary period, negative real rates should be addressed as soon as possible. With policy rate near estimated neutral level, BOJ must more closely assess prices, employment and financial conditions for further moves. Market reaction As of writing, the USD/JPY

The post ECB Philip Lane: Oil shock to require rate hikes appeared on BitcoinEthereumNews.com. The European Central Bank (ECB) Chief Economist Philip Lane crossed the wires, saying that the energy shock caused by the Iran war will require a restrictive policy at a conference in London. Lane said that “a mid-size but not-too-persistent overshoot could warrant some measured adjustment,” adding that the response has to be “appropriately forceful or persistent” on Lane reaffirmed the ECB’s line that “a mid-size but not-too-persistent overshoot could warrant some measured adjustment” while the response had to be “appropriately forceful or persistent” would require a firmer or longer-lasting policy reaction. EUR/USD reaction on the headline The EUR/USD bounced off around the 1.1700 figure, past the 100-day Simple Moving Average (SMA) of 1.1708, which could open the door for further gains. Up next is the 20-day SMA at 1.1730. ECB FAQs The European Central Bank (ECB) in Frankfurt, Germany, is