Case Analysis

Summary of these two articles, analysis on the cases and find out its effect on interest rates.

High inflation to haunt global economy this year: Reuters poll Friday, 28 January 2022

Persistently high inflation will haunt the world economy this year, according to a Reuters poll of economists who trimmed their global growth outlook on worries of slowing demand and the risk interest rates would rise faster than assumed so far.

This represents a sea change from just three months ago, when most economists were siding with central bankers in their then-prevalent view that a surge in inflation, driven in part by pandemic-related supply bottlenecks would be transitory, reports Reuters.

In the latest quarterly Reuters surveys of over 500 economists taken throughout January, economists raised their 2022 inflation forecasts for most of the 46 economies covered. While price pressures are still expected to ease in 2023, the inflation outlook is much stickier than three months ago.

At the same time, economists downgraded their global growth forecasts. After expanding 5.8 percent last year, the world economy is expected to slow to 4.3 percent growth in 2022, down from 4.5 percent high inflation to haunt the global economy this year

Persistently high inflation will haunt the world economy this year, according to a Reuters poll of economists who trimmed their global growth outlook on worries of slowing demand and the risk interest rates would rise faster than assumed so far. This represents a sea change from just three months ago, when most economists were siding with central bankers in their then-prevalent view that a surge in inflation, driven in part by pandemic-related supply bottlenecks would be transitory, reports Reuters. In the latest quarterly Reuters surveys of over 500 economists taken throughout January, economists raised their 2022 inflation forecasts for most of the 46 economies covered. While price pressures are still expected to ease in 2023, the inflation outlook is much stickier than three months ago. At the same time, economists downgraded their global growth forecasts. After expanding 5.8 percent last year, the world economy is expected to slow to 4.3 percent growth in 2022, down from 4.5 percent