world-economy

Central Banks Split on Stimulus as Middle East Conflict Roils Global Economy

Central banks across Asia and Europe are taking divergent approaches to economic stimulus as the Middle East conflict creates uncertainty in global markets. Thailand's monetary authority warned against broad consumption stimulus measures, citing the need to preserve fiscal flexibility amid ongoing geopolitical tensions. Japan's central bank has signaled readiness for further rate increases, supported by real wage gains that have held steady for three consecutive months. The European Central Bank plans to maintain its current interest rate stance while evaluating the conflict's broader economic impact. Meanwhile, inflation pressures are mounting in Southeast Asia, with the Philippine central bank forecasting inflation could reach a three-year high between 5.6 and 6.4 percent in April. Policymakers also cautioned against weakening bank capital requirements, arguing such moves could redirect funds toward investor payouts rather than productive lending.