Analyst: Rising oil prices may become a more structural driver of inflation

```htmlGolden Ten Data reported on April 7th that analysts from Abu Dhabi First Bank stated in a report that the strength of oil prices has already become, and will continue to be (at least in the short term), a more structural driver of inflationary pressure. The analysts pointed out that inflationary pressure has led to a sell-off in interest rates as central bank rate-cut expectations have faded. The market previously anticipated two to three rate cuts by the Federal Reserve this year, but these expectations have now been ruled out. According to LSEG data, the currency market currently expects US policy rates to remain largely unchanged until 2026, with only a very slight tightening bias. The market has even priced in a more hawkish scenario of rate hikes by the European Central Bank and the Bank of England by the end of this year, with increases of 74 basis points and 56 basis points respectively, “which is largely the result of imported energy inflation in Europe.”```