Under our new central projection, during the current quarter of this year y-o-y inflation will reach a peak (most probably in September) and then start to decline, most probably more vigorously in H2 2023, only to return within the target tolerance band in H1 2024, i.e. by the end of the projection horizon.
Quantitative easing is being adopted by central banks that have little or no scope to lower interest rates in economies experiencing major deleveraging, and where deep concerns exist about generating and sustaining economic growth. It is a sign of desperate times for central banks, who in some instances are shouldering the burden of domestic policy paralysis over fiscal policy.