Former BOE Governor King Sees `Upside' Inflation Risks

The video discusses the current concerns of central banks regarding inflation, questioning whether it is transitory or becoming sticky. It identifies three main sources of inflation risks: COVID-19 bottlenecks, volatile energy prices, and political pressures. The impact of rising interest rates on markets and politics is also examined. The speaker suggests that central banks should keep options open, abandon forward guidance, and be ready to respond quickly to inflation risks.

What historical context does the speaker provide regarding inflation and interest rates?

What is the speaker's view on the importance of central banks keeping options open?