As the central bank grapples with rising prices, it is also crucial for them to prepare for potential economic downturns in the future. The need for flexibility and adaptability is essential in navigating the current financial landscape.
It is a challenging task for the central bank to strike a balance between controlling inflation and being prepared for economic uncertainties. The central bank must be proactive in its approach to monetary policy and be ready to adjust its strategies as needed.
With the economy facing various challenges, including supply chain disruptions and rising commodity prices, the central bank must remain vigilant and responsive to changing market conditions. Being nimble and quick to respond will be key in ensuring stability and resilience in the face of potential economic downturns.
Overall, the central bank’s ability to navigate the current economic landscape while also preparing for potential downturns will be crucial in maintaining stability and promoting growth in the long term.
Source: The Economist
