The Russia-Ukraine crisis poses a challenge for central banks in advanced economies as they weigh the upside risks to inflation against the downside risks to activity. For now, we suspect that the two are finely balanced and have not changed our forecasts of steady policy tightening. But a marked escalation of the crisis might tip the balance in favour of later or slower interest rate hikes, especially in the euro-zone.
Drop-In (24th Feb., 14:00 GMT/09:00 ET): Our panel of senior economists will be back online this Thursday to bring you up to date on what the latest Russia-Ukraine crisis developments mean for our 2022 outlook. Register here.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services