With staggering amounts of liquidity injected into the financial system over the past year, there has been a recent surge in pundits claiming that inflation is back and that interest rates will have to rise to counter its evil influence. Whether or not this is the case, only time will tell.
In a recent article for Treasury Management International, our Head of Treasury and Real Estate, Richard Burrows, examines why the prospect of inflation attracts such attention and concern.
Economists have highlighted the impact of long-term deflationary pressures from increasing automation, reduced union bargaining power, among other elements. As economies continue to re-open, the conflicting dynamics of inflationary and deflationary factors will create some tough decisions for rate-setters.
Read his full article on Treasury Management International.
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