Welcome to Economic Monitor – a quarterly publication where we explore the key themes shaping the global economy. In this issue, we ask: how far will central banks go to crush inflation?
- Having been behind the curve in tackling inflation risks at the start of 2022, central bankers have been trying hard to catch up in recent months.
- Interest rates are increasing in major developed economies at the fastest pace since the early 1980s.
- The shift in expectations relative to the start of the year has been dramatic, but a key question now is whether central bankers can engineer a soft landing for the economy or if this rapid rise in interest rates will tip their economies into a recession.
- With central bankers going “all-in” in their battle against inflation, and with some countries having not yet reached peak inflation, we have likely not reached the point where language and actions on interest rates from policymakers can change from the extra-hawkish tone portrayed in recent months.
Read and download the Q2 2022 edition of Economic Monitor here.