However, he admitted it would be "foolish" to predict things will not become turbulent into the summer, adding: "Until central banks are comfortable headline inflation no longer poses a threat, destabilising bankruptcies remain a strong possibility.
"But to give central bankers their due, they have yet to induce recession despite the talk for the past year.
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"Perhaps they can engineer a soft landing for the economy after all, by way of a return to lower, less damaging interest rates while inducing a less risk-averse attitude from banks and other sources of corporate credit towards borrowers."
simoney.kyriakou@ft.com
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