“If the conflict persists or widens beyond current expectations, that could trigger sharper adjustments in inflation expectations and financial conditions,” he told journalists while discussing the BIS’s latest quarterly review. “It really depends on how long the conflict lasts and how long the rise in the oil price will be sustained,” Shin said. “That is something which is going to be a very important topic for us to keep under review,” Shin told reporters. “The impact of a sustained rise in energy prices will have an effect on the real economy and the longer it lasts, of course, the larger that impact. Many central banks have moved away from descriptive guidance to instead present projections in different scenarios, often including rate paths, the BIS found.

Source: The Edge Markets March 16, 2026 13:53 UTC