Oct 19, 2021 03:21 AM (GMT+8) · EqualOcean
Financial Associated Press, October 19 - Jean Boivin, strategist of BlackRock Investment Research Institute, said that the current rebound in inflation is driven by economic restart rather than rising energy prices. As global activities are still far below their long-term potential level, there is still room for the economy to rise. Supply will eventually rise to meet demand, rather than falling demand to match supply, as in the 1970s. It is expected that the price pressure will continue until 2022 and finally subside with the recent easing of supply-demand imbalance. The risk is that the market and the central bank misinterpret the current impact, leading to a rapid rise in inflation expectations or premature tightening of monetary policy.