Central banks around the world believe that moderated inflation is a sign of a healthy and growing economy. Instead of prices spinning out of control, banking hubs like the European Central Bank see inflation as a temporary annoyance. European Central Bank board member Isabel Schnabel said, “The current inflationary spike can be compared to a sneeze: the economy’s reaction to dust being kicked up in the wake of the pandemic and the ensuing recovery.” Central banks from Norway to South Korea and Hungary have increased interest rates while the U.S. Federal Reserve and Bank of England are close to making a move.
Comments