Financial Crisis in the Forecast – Whither Barbados and SIDs?
The blogmaster is unsure how many Barbadians are going about business today blissfully unaware of the meltdown in global financial markets. Central banks around the world are reluctant to be aggressive with tightening monetary policy for fear it will trigger another financial crisis. The ongoing conflict between Russia and Ukraine will continue to spike inflation given disruption to global supply in a ‘post Covid 19’ period.
For Small Developing States (SIDs) there is no quick fix to the hardships that will have to be endured for an indeterminable period. The Barbados dollar is pegged to the USD and combined with being a net importer with key components being food and oil, as the local parlance goes – we in ducks guts.
This is no time to play politics.
Global markets are tanking ahead of a huge week for central banks
PUBLISHED MON, JUN 13 20224:40 AM EDTUPDATED MON, JUN 13 20227:58 AM EDT
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- Global stock markets are falling sharply after May’s U.S. inflation print reignited fears that central banks will be forced into aggressive monetary policy tightening.
- The U.S. 2-year Treasury rate hit its highest level since 2007 on Monday morning and edged closer to an inversion with the benchmark 10-year rate – seen by many as a sign of an impending recession.
- “While [the Fed] can’t sit there and say their job is to end job creation for the moment, that is basically what they need to do if they are going to get inflation back under control now,” TD Securities’ Richard Kelly said.
Read full CNBC report