Central Bankers Gloomy on Inflation and Recession at ECB Forum
Central bankers gathered in Portugal to discuss rising inflation pressures at the ECB summit, with Japan taking a contrasting stance....
- Central bankers at the annual ECB forum discussed further policy tightening to combat inflation.
- Representatives from the ECB, Federal Reserve, Bank of Japan, and Bank of England were present.
- Jerome Powell of the Federal Reserve believed policy hadn't been restrictive enough for long enough.
- Christine Lagarde of the ECB recognized the risk of a European recession but said it wasn't the baseline expectation.
- The Bank of England admitted its forecasts had become unworkable and announced an external review.
- Bank of Japan Governor Kazuo Ueda wanted to see sustained and significant inflation before making policy changes.
- Rising prices have been a mounting concern since 2021, with the current crisis being the biggest inflation shock since the 1980s and 1990s.
Overall, the sentiment in the article is mixed. Some central bankers expressed optimism about their ability to combat inflation without causing a recession, while others acknowledged the risks and challenges they face. The article also highlights concerns about rising prices and the need for policy adjustments.