Central Banks Meet Amid Iran Conflict, Oil Crisis

0:00What's up? I'm Corey, and these are your headlines from Sydney News Today. Major central banks around the world are meeting this week against the backdrop of the U.S. and Israeli strikes on Iran. The Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and others, like Australia's Reserve Bank and China's People's Bank are all, convening. The conflict has shut down the Strait of Hormuz, causing with the international energy agency calls, the biggest oil market disruption ever. This has spiked oil and gasoline prices worldwide, hitting supplies of refined fuels, liquefy natural gas, fertilizers, metals, and more. It's like the supply chain chaos from the pandemic, fueling inflation and slowing growth. Aviation in the region, including busy hubs in Dubai and Doha, has ground to a halt for passengers and cargo. Markets have reacted sharply, with share prices dropping nearly 5%. In the U.S., consumer confidence dipped from 56.6 to 55.5.

1:02And jobs fell by 92,000 in February. Australia's Reserve Bank is now almost certain to hike interest rates on Tuesday amid rising petrol costs. Recent data paints a tougher picture for the U.S. economy. Growth in the last quarter of last year was revised down from 1.4% to just 0.7% even before the war. More inflation hit 3.1% in January, up from 2.7% in October. Central bankers face a tough choice between fighting higher inflation and supporting weakening growth in jobs. The Fed isn't changing policy this week, but share Jerome Powell's comments on the oil shock will be closely watched. The longer the straight stays closed, the wider the economic ripple spread. DNN is brought to you by our sponsor link in the description, your pillow, your podcast, or moments made for listening in bed, S-O-L-I, solely pillow.com.