Higher inflation may lead central banks to respond more aggressively than currently expected, which could lead to
a sharp tightening of financial conditions.
Not exact matches
«These (risks) include the possibility
of a
sharp tightening of global
financial conditions, growing trade tensions, and geopolitical strains — while the outlook for oil prices remains subdued and highly uncertain,» the report said.
For example, in the fall
of 2008, Taylor Rule prescriptions were well above the level
of rates that was appropriate given the
sharp and persistent deterioration in the economic outlook and the
sharp tightening in
financial conditions that occurred during that period.
Oil price volatility, trade tensions, geopolitical risk and a «
sharp tightening of global
financial conditions» are just a few
of the potential pitfalls that lie ahead.