According to a recent report, G20 draft communique sees growing chance of global economic ‘soft landing’.
According to the draft communique, the G20 finance ministers and central bank chiefs gathering in Rio de Janeiro plan to flag the risks of an uneven global recovery hinging on the persistence of inflation.
The soft landing of economy refers to a scenario in which inflation is tamed without triggering a painful recession or sharp jump in unemployment.
The central bank can raise interest rates just enough to slow the economy and reduce inflation without causing a recession, it has achieved what is known as a soft landing. Hence the central banks aim for a soft landing when they raise interest rates to curb inflation.
