Central banks ‘set up to fail’ on 2% inflation, says Davies

LONDON: Central banks are “set up to fail” in their battle to bring inflation in line with their current mandates, according to NatWest Group Plc’s Howard Davies.

The pressure to get inflation down to 2% will involve some “very unpleasant decisions by the Federal Reserve (Fed) and indeed by the Bank of England, and we may just not have that political support,” Davies said in an interview with Bloomberg TV.