PERSPECTIVE3-5 min to read

Does it make sense to ditch the 2% inflation target?

Investors are beginning to question whether central banks should set their sights higher. In the absence of firm evidence that inflation is structurally higher, doing so would be premature, but there is always a risk the decision gets taken out of the hands of independent monetary policymakers.

12/01/2023
Inflation targeting

Authors

George Brown
Senior US Economist
inflation targeting
Inflation targeting
Inflation targeting

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

George Brown
Senior US Economist

Topics

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.