Economics

Central Banks ‘Set Up to Fail’ on 2% Inflation, Davies Says

WATCH: Howard Davies, chairman at Natwest Group, discusses the challenges central banks face in bringing inflation down to a 2% level.Source: Bloomberg

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By Evelyn Yu

August 26, 2022 at 11:07 AM UTC

This article is for subscribers only.

Central banks are “set up to fail” in their battle to bring inflation in line with their current mandates, NatWest Group Plc’s Howard Davies has warned.

The pressure to get inflation down to 2% will involve some “very unpleasant decisions by the Fed and indeed by the Bank of England, and we may just not have that political support,” Davies said in an interview with Bloomberg TV Friday. “On the current regime, the central banks are set up to fail.”