International News 17 March 2026
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Bank of Japan Faces a New Policy Dilemma Amid Surging Global Inflation
The Bank of Japan is widely expected to keep its benchmark interest rate unchanged at this week’s policy meeting. However, the Japanese central bank may still signal a potential tightening bias as inflationary pressures increase, largely driven by the recent surge in global energy prices. The pressure intensified following the outbreak of the Iran–U.S.–Israel War 2026 on February 28, which pushed global oil prices sharply higher—at one point rising by around 70%—and reignited inflation concerns across many economies. For Japan, the impact is particularly significant due to its heavy reliance on imported energy. Higher oil prices directly increase import costs and add pressure to domestic price stability, while the weakening yen further amplifies imported inflation.
https://internasional.kontan.co.id/news/suku-bunga-boj-dilema-baru-di-tengah-lonjakan-inflasi-global
Shell Sees Global LNG Demand Rising by Up to 85% by 2050
Global demand for liquefied natural gas (LNG) is projected to rise significantly in the coming decades, increasing by around 54%–68% by 2040 and 45%–85% by 2050 compared with the 2025 level of 422 million metric tons. The growth is expected to be largely driven by rising energy demand across Asia, according to Shell plc, one of the world’s largest LNG traders, in its statement on Monday (March 16). A year earlier, Shell plc had estimated that global LNG demand would reach 630–718 million metric tons annually by 2040. The company has now revised that outlook, narrowing its 2040 forecast to a range of 650–710 million metric tons per year while extending projections to 2050, with demand expected to reach between 610 million and 780 million metric tons annually. In line with this outlook, Shell plans to increase its LNG sales by approximately 4%–5% each year
The U.S. Dollar Index Edges Lower Ahead of Global Central Bank Meetings
The U.S. dollar eased slightly on Monday (March 16, 2026) after recently reaching its highest level in ten months, as global markets turned their attention to upcoming central bank meetings and ongoing geopolitical tensions stemming from the U.S.–Israel conflict with Iran. Major central banks, including the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan, are set to hold policy meetings this week—the first since the escalation of the Middle East conflict. Investors are closely watching these meetings for signals on how policymakers assess the impact of higher oil prices on inflation and economic growth. Although the U.S. Dollar Index slipped slightly below the 100 level, it remains close to its ten-month peak of 100.27 reached last Friday. Since the U.S.–Israel strikes on Iran in late February, the dollar has strengthened as investors sought safe-haven assets amid rising geopolitical risks. Meanwhile, other major currencies such as the euro have faced pressure, partly due to Europe’s heavy reliance on imported energy. Weekly data from U.S. market regulators also indicate that investors have nearly eliminated their previous short positions on the dollar since the conflict began.