Global central banks may already be facing a new economic environment where inflation and interest rates will no longer revert to the low levels of the past, Bank of Japan Gov. Kazuo Ueda said on Wednesday.
While supply factors have been blamed for the current increase in global inflationary pressure, demand factors such as massive fiscal and monetary support deployed during the pandemic may also have played a part, Ueda said.
Some academics say the global inflationary pressure may eventually subside, but others warn the current period of high inflation will change people's view on prices, he added.