The Strategist

Inflation becomes main fear of central banks

07/08/2021 - 07:05

Inflation has become the main fear of central bank reserve managers around the world.

The Blue Diamond Gallery
The Blue Diamond Gallery
As Reuters writes, citing the results of the UBS survey, authorities are also worried about a possible continuation of the coronavirus pandemic and the resulting crisis, as well as rising debt levels.

Representatives of nearly 30 global central banks took part in the UBS survey, which was conducted in April and June.

More than half of the respondents - 57% - saw inflation as the main risk to the global economy. A year ago, none of the regulators surveyed voiced such fears.

79% of respondents named possible failure to fight a pandemic on their list of fears.

71% are worried about the level of government debt.

"Inflation is once again becoming a major worry for central bankers. Most say they expect it to rise, but not to very high levels. So there seems to be a perception among the regulatory community that the increase in inflation that we are facing now is temporary," the agency quoted Massimiliano Castelli, head of strategy and advice at UBS, as saying.