Posted 4/15/2024, 10:20:56 AM
Tensions Raise Economic Uncertainty
- Geopolitical tensions could impact global economy through higher oil prices, more inflation, dilemma for central banks
- Risk that geopolitical shock hurts economic growth, bringing forward rate cuts
- But higher oil prices could also lead to more inflation, meaning rates stay higher for longer
- Effects can work both ways - slowing growth but also stoking inflation
- Comes at a time when there's already concern about persistent inflation in some countries
