Standard Chartered: Central banks must prepare for structurally high inflation

```htmlGolden Ten Data reported on July 15 that Eric Robertson from Standard Chartered Bank pointed out that central banks need to recognize that we are currently in a structurally high inflation environment. This means that monetary policymakers have less flexibility than in the past. “It also means that, when dealing with some form of supply shock, there is less room for maneuver.” Robertson gave an example: If the global economy is at an inflation rate of 1%, then a weather shock such as the “El Niño” phenomenon might seem insignificant; but if countries are struggling to keep inflation at 3% or below, and then simultaneously encounter supply shocks in the oil and food sectors, the combined effects of these shocks will become apparent. This poses a challenge for central banks, because raising interest rates will not increase the supply of wheat, nor can central banks take measures to alleviate supply shocks caused by weather factors.```