Members commenced their deliberations by discussing the impact of the conflict in the Middle East on global financial conditions. While riskier asset prices had moved in response to the conflict and the resultant increases in oil prices, the net change since the onset of the conflict had been modest. Global equity prices had rebounded from an initial decline, supported by the announcement of a ceasefire and material upgrades to forecast earnings in some sectors, including semiconductors. Corporate bond spreads in advanced economies had retraced the rise observed immediately after the onset of the conflict and ... (full story)