Central banks, like the Bank of Canada and U.S. Federal Reserve, “have their head in the sand because they're focused on fighting yesterday's war,” according to David Rosenberg, founder and president of Rosenberg Research.

“All the things (commodities) that were producing the inflation that occupied our minds for the past a year and a half, they're all unwinding in spectacular fashion as if these central banks have their head in the sand because they're focused on fighting yesterday's war,” Rosenberg said in an interview Thursday.

“I imagine a lot of it is because they are so ashamed and so embarrassed of having missed this mini inflation cycle that they're trying to make up for by being unduly aggressive, just as these inflation indicators principally in the commodity markets are rolling over in significant way.”

The Bank of Canada hiked its benchmark overnight rate by 75-basis points to 3.25 per cent on Wednesday, marking the fifth consecutive rate increase by the central bank.

But it’s not the only central bank that’s going full-steam ahead with tackling rising inflation.

U.S. Federal Reserve Jerome Powell said the U.S. central bank will continue to aggressively tackle inflation “until the job is done.”

Overseas, the European Central Bank has also intensified its fight against rising prices, hiking rates by a historic 75-basis points and pledging “several” additional increases.

“In terms of the ECB, and I'd say generally speaking amongst central banks around the world, is that they're really chasing last year’s story which is inflation, and inflation like the unemployment rate is a classic lagging indicator,” Rosenberg said.

“In my professional lifetime, spanning more than 35 years, I've never seen central banks so radically chasing yesterday's story and I think this is going to end very badly for the global economy as a result.”