The chorus of central bankers: Higher rates for longer
SummaryTighter money policies in rich countries are facing off with markets and the outcome will affect India
The picturesque town of Sintra, Portugal, played host last week to an unusually candid conversation between four of the world’s top central bankers: those of the US, Eurozone, UK and Japan. US Federal Reserve Chairman Jerome Powell, Bank of England (BoE) Governor Andrew Bailey, European Central Bank (ECB) President Christine Lagarde and Bank of Japan (BoJ) Governor Kazuo Ueda were at the annual ECB forum on central banking. All excluding Ueda were in sync, repeating the phrases like “data dependent", “meeting by meeting", “robust labour markets" and “resilient growth." They were united in the assertion that they must continue to act to “return inflation to target." Understandably, the BoJ was joining the party from the other end of the inflation-growth spectrum and was on a “watch and see" mode.