Central banks face ‘double whammy’ from Iran war – Central Banking
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Policy-makers will have to tackle impact of higher inflation and greater fiscal stimulus
Central banks could soon face a “double whammy” in the form of higher inflation and fiscal stimulus by governments responding to the effects of the conflict in the Middle East, a senior executive at an investment management firm told the Central Banking Meetings, Kuala Lumpur.
The executive said at an event on March 31 that “the double whammy comes in when fiscal authorities step in as they’ve been trained to do by the global financial crisis, the Covid drawdown and other crises of confidence
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