Conflicting Dynamics of Inflation and Deflation Trigger Headaches for Rate-Setters

As central banks continue to inject liquidity into the financial system, Richard Burrows, Head of Treasury, BACB, examines the perils of hiking up interest rates to control runaway inflation. Even a modest rise, he warns, could see businesses and households struggling to service their debts. Some of the better-rewarded players in financial markets are traders […]