Drop-In: Global inflation briefing – Limited second-round risks reduce need for rate hikes

Even as the US and Iran seek a deal that would reopen the Strait of Hormuz and lower energy prices, investors are increasingly focused on the risk of higher inflation and tougher central bank responses. But how serious is the threat of a renewed inflation surge, which economies are most vulnerable and are markets correctly pricing the outlook for interest rates?

To mark publication of the latest edition of our Global Inflation Watch, and ahead of key policy decisions from the Fed, ECB and Bank of Japan, Chief Global Economist Jennifer McKeown and Deputy Chief Global Economist Simon MacAdam hosted this special briefing on the global inflation outlook.