Overview
- Sri Lanka’s central bank raised its policy rate by 100 basis points to 8.75% to counter higher fuel bills, rising consumer prices and pressure on the rupee.
- Senior ECB officials have said the bank must be ready to act and markets are pricing a likely rate increase at the June meeting if incoming data show broader inflation.
- Japan’s new BOJ trend gauge showed underlying consumer inflation at 2.8% in April, which has strengthened market expectations of a policy move as the BOJ gauges persistence.
- Australia’s headline CPI fell after a temporary fuel‑excise cut but trimmed‑mean core inflation rose to 3.4%, keeping the Reserve Bank alert to second‑round pass‑through to services and wages.
- Policymakers face a tradeoff for import‑dependent emerging markets where sustained oil above $100 a barrel raises import bills, drains reserves and risks currency losses that can feed further inflation.