The Monetary Policy Challenge: When the Strait of Hormuz Controls Interest Rates

In an analysis published by The Economist, the predicament facing major central banks was highlighted based on IMF assessments. Decisions to cut or raise interest rates have become contingent on the stability of navigation in the Strait of Hormuz and oil prices. This close link makes controlling inflation nearly impossible, explaining investors' recourse to gold, and consumers' resort to acquiring electric vehicles to ease living transportation burdens linked to bank interest rate decisions.