Central banks’ focus is still on inflation

CENTRAL Bank governor and European Central Bank policy maker John Hurley says the world’s central banks are concerned about oil and commodity price-driven global inflation.

In a speech delivered to an Oireachtas parliamentary committee, Mr Hurley said the ECB had raised euro zone interest rates this month in an attempt to combat the problem, warning that it had the potential to sap Europeans’ prosperity and undermine economic confidence.

“Inflation ... creates uncertainty for savers and investors and undermines confidence in an economy in a way that ultimately damages the welfare of its citizens,” he said.