Elena Nikulina

Tightening policy will not address core inflation drivers, Daniel Lacalle warns

Tightening policy will not address core inflation drivers, Daniel Lacalle warns
Central banks face policy error risk

Daniel Lacalle, chief economist and investment manager at Tressis Gestion, warns that central banks are about to make a major policy error by tightening monetary policy in the midst of a temporary energy crisis.

Lacalle argues that such actions will have no impact on oil prices, geopolitical risk premiums, or government spending—factors he identifies as the primary causes of persistent inflation—but will instead harm economic growth.

Lacalle has previously highlighted resilience in global markets. He noted that Israel’s economy and financial markets remain strong despite conflict in the Middle East. In another report, he pointed to weakness in China’s economy reflected by car sales and house prices. These comments add recent context to his latest warning on central bank policy.

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