A pedestrian walks near the Royal Exchange and the Bank of England in the City of London on December 28, 2020. The central bank’s chief economist has warned that UK inflation is likely to hit or surpass 5 per cent by early next year. Photo: AFP
A pedestrian walks near the Royal Exchange and the Bank of England in the City of London on December 28, 2020. The central bank’s chief economist has warned that UK inflation is likely to hit or surpass 5 per cent by early next year. Photo: AFP
David Brown
Opinion

Opinion

Macroscope by David Brown

Central banks should resist hitting the panic button on inflation

  • A return to tougher monetary policy is not the answer as higher inflation this year will eventually subside in 2022
  • This is a different world from the high inflation 1980s when annual consumer price rises reached 14.6 per cent in the US and interest rates surged to 22 per cent

A pedestrian walks near the Royal Exchange and the Bank of England in the City of London on December 28, 2020. The central bank’s chief economist has warned that UK inflation is likely to hit or surpass 5 per cent by early next year. Photo: AFP
A pedestrian walks near the Royal Exchange and the Bank of England in the City of London on December 28, 2020. The central bank’s chief economist has warned that UK inflation is likely to hit or surpass 5 per cent by early next year. Photo: AFP
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