OECD’s Cormann: Global inflation pressures seen easing in next 12-18 months

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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