Inflation menace vs pandemic recovery: Central bank guide for 2022
BNN Bloomberg
Global central banks are set to spend 2022 diverging, as some take on the menace of inflation and others stay focused on boosting economic growth.
Global central banks are set to spend 2022 diverging, as some take on the menace of inflation and others stay focused on boosting economic growth.
The pandemic remains a risk to demand the world over, but after triggering a recession in 2020, its subsequent igniting of price pressures has also posed a challenge for monetary policy makers.
They enter a new year having to tread carefully. Acting quickly to control prices could end up quashing expansions, especially if inflation fades anyway.
Waiting longer to secure recoveries might mean inflation festers, requiring stronger action later.
Increasingly rattled by the outlook, the Federal Reserve is set to hike interest rates for the first time since 2018, although its peers in Canada and the U.K. may shift even sooner.
Thirteen counterparts tracked here are also seen tightening, including most of the emerging market institutions that led the charge with rate hikes in 2021.
