G7 central banks poised to hold borrowing costs amid concerns over prolonged Iran war

Critical week for global economy as banks expected to issue warnings over conflict driving up prices The world’s most powerful central banks are poised to hold borrowing costs unchanged this week amid growing concerns over the unfolding inflation shock from the Iran war. In a critical week for the global economy, each of the central banks in the G7 are expected to issue warnings over the risks from the Middle East war driving up prices for households and businesses. Financial markets are braced for signals from the central banks of the US, Canada, Japan, Britain and the eurozone on the prospects for interest rates amid concerns that a prolonged conflict could force them to keep borrowing costs higher for longer. “Another week of no fighting, no deal and no energy flows, another week that pressure on inflation and supply chains continues to build,” said Wei Yao, an analyst at the French bank Société Générale. “We will probably see all the major central banks sticking to the strategy of ‘keep clam but stay vigilant’. Communications will be the focus.” In what is expected to be Federal Reserve chair Jerome Powell’s final meeting in charge, the US central bank is widely expected to kee