The creator of monetary policy Bank of International Settlement in there quarterly report said that inflation is tamed and under control. There was however reason for „cautious optimism“ because central banks have taken action to prevent inflation strengthens said head of the Monetary and Economic Department of the BIS, Claudio Borio.

“At the same time, economic activity has been remarkably resilient and the financial system has held up well.”

BIS is starting to be optimistic for future inflation stagnation because of progress and effort that central banks have accomplished to the end of last year. Even if there was a significant chance, that this inflation escalate and spread, monetary policy will change and stop it.

Claudio Borio said that „day light“, started to narrow between time when markets expect interest rates to start falling again. Central banks have better assessed the risk and that is the fact that financial markets have moved closer to their central banks views.

Many indicators potentially change financial market like technology. NVIDIA chips who power AI software, Facebook (META), stock who rapidly go up and enthusiastically drive the market to extreme heights.

Many other markets have strengthen this year and investors have seen „huge soft landing“, for major economies, added Hyun Song Shin, head of research at BIS.

Regarding „soft landing“ for major economies, many economy researcher’s think that we are on a good way to recover but it will take years to go back to the previous position before COVID19.