Global Central Banks Tighten as Imported Inflation Surges

Global imported inflationary pressures have intensified this year due to geopolitical conflicts in the Middle East and fluctuations in international commodity prices. The People's Bank of China (PBOC) recently released its Second Quarter 2026 Monetary Policy Implementation Report, which analyzed the shifting overseas monetary policy landscape.

The report noted that major central banks' stances are turning, but expects the magnitude of this round of adjustments to be relatively mild, with a potentially smaller impact on global financial markets than in the past. The European Central Bank (ECB) and the Bank of Japan (BOJ) have already taken the lead in hiking rates, while the Federal Reserve continues to send hawkish signals.

The report identified three key driving factors behind rising inflation: price transmission from the supply side, structural demand triggered by artificial intelligence investment, and commodity inflation pressure brought about by tariff barriers. The United States is a particular case in this regard, where trade policy uncertainty further exacerbates price vulnerability.