Climate change may mean that inflation remains high, central bankers said. More extreme weather patterns both affect workers’ abilities to do their jobs and supply chains’ dependability, forcing prices higher.
Bank of England research this year showed that food prices in particular are affected. Greener investments are “conducive, and not prejudicial, to price stability,” a European Central Bank governor (The European Climate Law and the European Central Bank - Amsterdam) said at a conference today.
Yet it is not clear what precisely central banks can do: The head of the Bank of Thailand, hosting a separate conference in Bangkok, noted that the climate challenge was “new to us,” warning there was no precedent to follow.
