Senior Bank of Canada officials said they face difficult decisions in the coming months about supporting a sputtering economy while keeping inflation low and stable amid a surge in energy prices.
Factory activity expanded in the U.S. in March, but the latest monthly reading from the Institute for Supply Management flashed a strong warning that inflation is resurgent amid the war in Iran.
Central bank officials have cautioned against treating rate rises as inevitable, despite investor expectations and eurozone inflation rising to 2.5% in March.
The country’s trade surplus reached a monthly record on strong demand for semiconductor shipments, a key growth engine through last year’s tariff-related trade turbulence.
The Fed president said the central bank should be prepared to address elevated inflation proactively so that it doesn’t get stuck near 3% in the long run.
Bank of Korea governor nominee Shin Hyun-song said U.S. dollar liquidity in South Korea remains ample despite recent volatility in the won, suggesting external risks to the financial system are contained.
March was the grimmest month of the year so far for consumers’ economic sentiment as the Iran war raised gasoline prices and dented the stock market, the University of Michigan’s latest monthly survey found.