BAKU, Azerbaijan, April 26. Moody’s Investors Service forecasts global inflation to decrease in late 2022 and, therefore, in 2023, keeping risks held back, Trend reports via the research from Moody’s.
Meanwhile, inflation all over the globe has exceeded forecasts, while leading central banks continue to raise refinancing rates in order to somewhat mitigate further increase.
“For banks, experience with inflation has encouraged prudent balance sheet management in many emerging markets, but inflation still has some correlation with rising credit costs”, Moody's Senior Vice President Allen Tischler said in this regard.
Developed market banks will likely benefit from regulatory stress testing and scenario analysis, though risk-management missteps may be exposed if there are monetary policy surprises, he said.
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