Why central banks are struggling to fix rate hikes?   

Frank Lucas
@Frank.Lucas · Posted 26 Oct. 2021

Rachael Davis
@Rachael.Davis · Updated 26 Oct. 2021

Central banks are struggling because lockdowns due to covid affected the supply chain and which has pushed down the inflation of the global economy at a faster rate not as usual. The condition has made the central banks a little confused about whether to increase the rates or decrease the rates. According to the latest news central banks are forced to check out the imbalance part and try to solve it. But the central banks are under huge pressure as the work is not under their control. 

Peter Clark
@Peter.Clark · Updated 26 Oct. 2021

According to business news due to post lockdown opening the inflation rate became very high as such. It happened due to the paucity of workers and also the supply of materials. As the rates are increasing the inflation seems to be in offset mode. The inflation rate is not, as usual, rising as such. But if the central banks do their best and put a hold on their crisis the inflation may go up further. 

Lily Campbell
@Lily.Campbell · Updated 26 Oct. 2021

The Central bank of Europe is on a count on its experience of the previous year in 2008 and 2011 and it was then when the rates were raised and overreacted. The economy was taking an u-turn as it was slowing down day by day. The main leaders of business are warning about the pressure of inflation will continue. Due to the scarcity of supply in semiconductors, the growth of sales is lowering down.

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