world-economy

Central Banks Hold Steady as Energy Shock Reshapes Inflation Calculus

Central banks across multiple regions are pausing rate moves as surging energy costs complicate inflation management. Mozambique's monetary authority held its benchmark rate flat for a second consecutive decision, citing uncertainty around price pressures stemming from global fuel markets. Nigeria similarly kept rates unchanged, characterizing its inflation spike as temporary despite near-term headwinds. The divergence in policy reflects broader emerging-market uncertainty: while some officials resist rate increases, others face mounting pressure to act. Czech leadership is pushing for cuts despite inflation risks, complicating the region's outlook. Economists have lifted inflation forecasts across major economies, pushing expectations for rate relief further into the year. Emerging-market assets declined sharply, posting their worst weekly performance since March as investors reassess central-bank timelines amid energy-driven price pressures.