Central Banks in Europe and Japan Adopt Hawkish Stance Amid Energy Concerns

According to Jin10, Lei Wang from Thornburg Investment Management highlighted in a report that the Bank of England, European Central Bank, and Bank of Japan have adopted a more aggressive hawkish stance due to their higher dependency on energy imports compared to the United States. The portfolio manager noted that the sharp rise in oil and natural gas prices has significantly contributed to overall inflation, causing concern among policymakers about the initial energy shock. Wang also pointed out the secondary effects, including wage levels, pricing behavior, and inflation expectations.