Investment Office Logo

Most Central Banks Have No Choice But to Remain Hawkish

Few have the scope to loosen policy if economic conditions worsen

Nikolaj Schmidt, Chief International Economist
T. Rowe Price,  April 2022

Key Insights

  • Central banks are under pressure to tighten policy on the back of surging commodity prices.
  • How banks respond will depend on their autonomy and their dependence on global capital flows.
  • Commodity-exporting countries and commodity-importing EM countries will likely stay hawkish; commodity-importing DM countries may become more dovish.


Access the full report from T. Rowe Price