Economics
Central Banks Turning Slowly in Ending Pandemic’s Easy Money Era
- While some central banks eye an exit, others remain dovish
- Inflation is now the key variable for monetary policy
This article is for subscribers only.
Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
Global monetary policy looks set to stay super easy well into 2022 even as central banks edge closer to dialing back their emergency support in the face of mounting inflation pressures.
In the last week, the U.S. Federal Reserve signaled it will start paring its massive bond-buying as soon as November and the Bank of England hinted for the first time that it may raise interest rates this year. Norway became the first developed economy to hike and borrowing costs were also increased in Brazil, Paraguay, Hungary and Pakistan.