All Central Bankers Speaking on Inflation Today

Today all major central bankers are participating in a panel discussion titled “Growth and Inflation Dynamics” at the Bank of Thailand 80th Anniversary Conference, in Bangkok. This comes at a crucial time for inflation, as prices of everyday goods and services keep surging. I don’t know what they can do because prices have been hiked by major companies, and producers and as a result of supply chain problems.

Most of the heads of the major central banks have spoken already early this morning, while Powell hasn’t yet.

Reserve Bank of Australia Governor Lowe

• Australian inflation expectations are still well anchored
• Inflation expectations in remain well anchored
• Household spending in Australia has been resilient to the higher interest rates so far
• In this cycle policy lags are likely to be longer
• The Reserve Bank of Australia is attempting to slow inflation without too much negative impact on the economy
• Central banks are going to be confronting much greater variance in inflation rates
• Must show members of the public that CPI will come down to target

The Reserve Bank of Australia meet on December 6. a +25bp rate hike is expected. I have seen expectations of a +15bp hike, which will bring the cash rate back to its regular 0, 0.25, 0.5, 0.75 little figures but I am not holding my breath for this.

BOJ Governor Kuroda

• Inflation rates around the world are expected to slow gradually and global growth will grow gradually
• Rate of global inflation in 2022 is expected to exceed that of 2021 then decline in 2023, a forecast that applies also to Japan
• As recent market turmoil in uk has shown, the reaction of market participants to policy decisions and announcements could significantly impact asset prices