Economist Nouriel Roubini Please be aware that global economy Is at Risk of an “hard landing” it is because of the central bank’s efforts to maintain control over high rates of inflation in advanced economies.
To bring down inflation to the targets, central banks will need to increase interest rates significantly more than initially expected. Roubini On Tuesday, she spoke at an Australian Financial Review business summit.
“Inflation is going to remain high because commodity prices are going to remain high this year,” Roubini. He said that inflation will also be fuelled by factors like a worsening Russia-Ukraine War and a growing Chinese demand of commodities in the face of growth.
RoubiniThe nickname was given to. “Dr Doom” For his long and bearish views about the global economyAccording to him, the US, Europe and Australia have experienced higher inflation than central banks or markets expected. On Tuesday, the Reserve Bank of Australia will raise interest rates for a 10th consecutive month.
Peter Costello, chairman of Australia’s Future Fund, said the RBA needed to convince the public that it would see through its plan to bring down inflation and said the Federal Reserve was talking “much tougher” Rather than policymakers at the local level.
“The worst thing that could possibly happen is if central banks announce they go on a policy of breaking inflation, and they don’t follow through because then we take the rate rises without the benefit,” Costello addressed the AFR Summit in Sydney.
Philip Lowe (RBA Governor) has faced criticism for not being able to deliver a coherent message regarding policy. He had indicated during the pandemic, that rates could be kept at an all-time low of record until 2024.
Economists are expecting the RBA to lift the cash rate by another 25 basis points to 3.6% at Tuesday’s meeting.
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