Global inflation is seen receding over the next two years as central banks normalize monetary policy settings, OECD Secretary-General Mathias Cormann said after the body released its Economic Survey of New Zealand Tuesday.
Key takeaways
“We do believe that over the next 12 to 18 months there will be an easing of inflationary pressures.”
“There will be monetary policy responses, there will be a gradual withdrawal of crisis-level fiscal support, but furthermore there will be a rebalancing of the global demand and supply equation.”
“Overall, I’ve got to say that the world economy is in much better shape at this point than we thought it would be when the pandemic first played out.”
“We don’t see a stagflation scenario playing out.”
Market reaction
The Asian stocks are tracking the positive close on Wall Street overnight, although the futures tied to the S&P 500 index are down 0.52% on the day.
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