Central banks are likely to overshoot in their inflation battles

The Reserve Bank of NZ’s inflation forecasts have been drastically wrong for more than a year. (Image: iStock)

Mon, 12 Dec 2022

Financial markets types globally are debating whether central banks are going to be able to engineer a “soft landing” for their economies or whether we could all be headed into a deep recession and every graduation in between.On past form, the odds favour a recession, so then the debate shifts to how mild or severe it’s likely to be.But we know that after a decade and more of inflation constantly surprising us by failing to appear, central banks and other forecasters alike were surprised at how strong and persistent post-covid...

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