Macroeconomic Picture - July/August 2022
Tuesday 12 July 2022
Western monetary policy has executed an impressive U-turn in the space of a few weeks. The Federal Reserve announced the biggest interest rate increase since 1994 and the European Central Bank is gearing up to hike soon. There was market turmoil, investors questioned the credibility of central banks and the probability of recession began to rise. The greater the gap between what central bankers say and what people believe, the higher may be the cost of bringing inflation under control since significant monetary policy tightening will be needed to rein in expectations about how fast prices will rise.
Cross Asset Investment Strategy