Market news
24.05.2023, 06:23

Higher interest rates and lower long-run growth more likely than permanently higher inflation – Nomura

Central banks and most economists are forecasting inflation will broadly return to 2% at the end of their forecast horizons. But will it? Economists at Nomura share their thoughts.

Will inflation settle at 2%?

“There may be tail risks of inflation settling at higher than 2% in both the medium and long term, although for now, this is not our base case.”

“In the medium term, labour markets may remain sufficiently tight and inflation expectations may prove to be stubbornly high. In the long term, we think the climate transition, demographic challenges and de-globalisation will make achieving 2% inflation increasingly challenging.”

“Central banks have a 2% inflation target. Does that mean these targets go out of the window? We don’t think so. A 2% target is essential to maintain the credibility of central banks.”

“Instead of entering a world of permanently higher inflation, we believe we are more likely to enter a world of permanently higher interest rates and lower long-run growth.”

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location