Energy costs affecting banks

LONDON: Higher energy prices are fanning inflation in several emerging markets, testing the resolve of their central banks and risking stymieing growth in Hungary, Poland and the Czech Republic and more currency weakness in Turkey, analysts say.
In a bold response to the price pressures, the Czech National Bank raised its main interest rate by 75 basis points, its biggest hike since 1997.
It cited rising energy prices as well as supply-chain disruptions and domestic factors like higher costs in owner-occupied housing and services.
The country’s prime minister said the hike would damage the economy, illustrating the dilemma emerging central banks face as they try to head off inflation. – BBC