This Energy Shock Is Shredding Central Banks’ Rates Playbook

How should central banks respond to supply shocks such as oil prices jumping in the face of the US-Israel war with Iran? Policymakers have long believed these to be inherently fleeting. Hiking interest rates to counteract them, by that logic, does more harm than good; it hurts economic growth and the labor market, when simply waiting out the shock would have sufficed.