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Global Reserve Banks News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Grant warns Covid economic disruption into 2022 and supply side inflation

In his first major pre-Budget speech, Minister of Finance Grant Robertson has warned that while New Zealand exports are getting out to the world, “supply chain issues” will continue to affect the country for the rest of this year and potentially into 2022. …this supply side scarcity has the potential to accidentally trigger inflationary pressures  that see prices spiral upwards. If interest rates are forced up, the ocean of debt can’t be serviced. TDB Recommends NewzEngine.com I think the collective sense of optimism from vaccine roll outs is misplaced. Our supply chains are deeply ensconced in the developing world that still hasn’t been vaccinated and

Will inflation tsunami spark economic black hole & social unrest?

Prices rose 0.8 per cent in the three months to the end of March. The quarterly inflation figure reported by Stats NZ was up from 0.5 per cent in the December quarter and in line with banks’ expectations, but shy of the Reserve Bank’s 1 per cent forecast. It leaves annual inflation marginally higher at 1.5 per cent, versus 1.4 per cent for the year to the end of December. That small change appears unlikely to settle growing debate over whether rising prices could knock the Reserve Bank and other central banks around the world off course later this year in their general intent to keep interest rates “lower for longer”.

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