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Central banks enjoy vague targets; How inflation alters portfolio construction

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Central banks enjoy vague targets; How inflation alters portfolio construction

Friday 23 July 2021 – Vol.12 Ed.29.5

Commentary: Central banks can take advantage of enhanced ambiguity

By Agnès Belaisch and Matteo Cominetta

After more than a decade of shocks, failing monetary paradigms and broken down correlations, central bankers have reaffirmed their commitment to discretion rather than rules. Basing monetary policy on explicit goals reduces the chance of success. Central banks need flexibility and vague policy targets provide it. And the European Central Bank’s strategy review is just the latest exercise in discretion and ambiguity

Read the full commentary on the website.

Meeting: Inflation and its role across asset classes

Tuesday 27 July, 09:00-10:00 BST

Market expectations for inflation are rising. In many nations political discussion revolves around what further spending would do to inflation as we inch towards recovery. Coupled with supply shortages and continued stickiness in the labour market, some economists and investors are beginning to raise red flags. In this panel we discuss the causes of inflation, where these rises are likely to hit and the opportunities and challenges created across asset classes.

Register to attend here.

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