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Financial TimesFriday, 1 May 2026
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ECB and BoE warn of rate rises as Iran war takes toll
Energy shock spurs inflation pressure
The paper examines the secondary economic fallout of Middle East conflict, focusing on the policy dilemmas facing central banks as energy-driven inflation risks a return to rate hikes.
A two-month-old war involving Iran has triggered a global energy shock, disrupting commodity markets. Central banks like the European Central Bank and the Bank of England are now warning that this could force them to raise interest rates to combat renewed inflation, complicating earlier market hopes for impending rate cuts.
“takes toll”
“Macroeconomic and market-focused”
On manoeuvres Merz faces fresh salvo from Trump as leaders trade barbs over Mideast
Highlights diplomatic friction between Western political figures regarding military posture and involvement in the ongoing Middle East conflict.
Israel gave UAE high-tech laser system to fend off drone and missile barrages
Reports on previously undisclosed defence technology cooperation between Israel and the UAE amid escalating regional threats.
Big Tech’s spending on AI infrastructure hits $725bn
Quantifies the massive, ongoing capital expenditure by major technology firms on artificial intelligence development.
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