Financial TimesFinancial Times

The inflation fight: Are central banks going too far, too fast?

By Chris Giles, Valentina Romei

23 Sep 2022 · 6 min read

Editor's Note

The FT reports on the growing debate among economists over whether central banks around the world are raising rates too aggressively, risking deep recession in order to combat high inflation.

With their bills sharpened and talons on display, the world’s central banks fully adopted the posture of the hawk this week. Backed by sharp rises in interest rates and currency intervention, they have used pointed language to advertise their singular aim of defeating the scourge of inflation.

In one of the most sudden shifts in global economic policymaking in decades, central bankers say they have had enough of rapid price rises and insist they are prepared to act to restore price stability, almost at any cost.

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