Central banks are trying to talk down inflation expectations

Ron Markus
Monday, 4 October 2021
Ron Markus

Upward pressure on inflation (expectations) continues, but central banks prefer to postpone monetary tightening for as long as possible. Especially now that the risks to economic growth are increasing. Central banks seem to be adopting a strategy to lower inflation expectations by indicating markets should soon expect monetary tightening. What does this mean for interest rates?

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