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Global central bank officials converge in Jackson Hole, with inflation and high interest rates set to be core topics.

44 minutes ago

This week, global central bank officials will convene in Jackson Hole, Wyoming, USA, to focus on re-examining global inflation and the prospect of further rises in borrowing costs amid new inflation threats. Spyros, an economist at Frankfurt-based Thin Ice Macro, stated: "Global central banks are likely to adopt a cautious stance, viewing inflation as their most undesirable risk. You never know when the next supply shock will strike suddenly." Subadra Rajappa, Head of US Research at Société Générale, noted that countries differ in the urgency they attach to inflation, partly due to varying exposure to energy cost volatility, which in turn depends on their import volumes. She pointed out that Europe and Japan are "more sensitive to developments in the Middle East and oil prices." Jari Stehn, Chief European Economist at Goldman Sachs, said: "We estimate that policy rates in the US and UK remain restrictive." "Different starting positions mean countries face varying pressures in responding to energy shocks, giving the Federal Reserve and Bank of England more time to monitor how this shock evolves." Patrick Harker, former President of the Federal Reserve Bank of Philadelphia, remarked: "The Iran situation has changed how people discuss issues and make policy choices, and there currently appears to be no sign of an end." "This makes this year's Jackson Hole symposium completely different, as we are now in a typical supply shock environment, or more precisely, multiple supply shocks hitting the global economy simultaneously." (Jinshi)

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