Central Banks Must Prepare for Structural Inflation Environment, Standard Chartered Warns on July 15

According to Standard Chartered, central banks must prepare for a structural inflation environment where policy flexibility is limited, said the bank's Eric Robertson on July 15. Supply shocks have a greater impact when inflation is already elevated; for example, weather disruptions like El Nino combined with oil and food supply shocks could create cascading effects in a 3% inflation regime, whereas the same shocks might be negligible in a 1% inflation environment.
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