Markets view this continuity as a signal that a disciplined approach will persist, even as high inflation risks and uneven growth signals complicate the outlook.

Oil markets experienced significant volatility as Brent crude surged toward $126 following reports of potential US military action against Iran. Prices eventually retreated to $116.50, but a heavy "geopolitical premium" remains due to ongoing threats in the Strait of Hormuz. Meanwhile, Japan’s 10-year yield reached its highest level since 1997 after the Bank of Japan held rates at 0.75%, as rising energy costs drove the 2026 core inflation forecast up to 2.8%.

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