In a recent interview with Euronews, Agnès Bénassy-Quéré, the deputy governor of Banque de France, discussed the looming challenges facing central banks amidst uncertain economic conditions. With the European Central Bank (ECB) rate decision pending, Bénassy-Quéré highlighted the need for central banks to navigate carefully in order to maintain financial stability.
One of the main concerns raised by Bénassy-Quéré is the potential impact of the recent surge in inflation on central bank policies. She emphasized the importance of striking a balance between supporting economic recovery and avoiding overheating in the economy. As such, central banks around the world are facing a delicate balancing act as they consider when and how to adjust monetary policy.
Furthermore, Bénassy-Quéré noted the need for central banks to stay vigilant in monitoring financial markets and risks, particularly in light of the ongoing pandemic and geopolitical uncertainties. She stressed the importance of clear communication and coordination among central banks to ensure a cohesive approach to address challenges.
Looking ahead, Bénassy-Quéré expressed optimism about the resilience of the global economy but cautioned that uncertainties remain. She highlighted the importance of continued cooperation and coordination between central banks to navigate the evolving economic landscape.
As central banks grapple with these challenges, the decisions made by institutions like the ECB will undoubtedly have far-reaching implications for the global economy. With economic recovery still fragile in many regions, central banks will need to carefully consider their next steps to support growth while maintaining stability.
Source
Photo credit www.euronews.com