Week of 27 April - 1 May 2026 |  Policy on pause

In this edition of Amundi's Weekly Market Directions: 

• The energy shock is large enough to change the policy backdrop, but it is not yet clear enough to justify an immediate response in the form of a rate cut or a hike.
• Although oil and gas prices remain close to the ECB’s March baseline, they are still above pre-war levels.
• Thus, central banks including the ECB, will need to proceed cautiously with monetary policy in the current uncertain environment.

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Monica Defend

Monica Defend

Head of Amundi Investment Institute

Global central banks are assessing the extent of the stagflationary shock. They want to keep market and consumer inflation expectations in check, while also retaining the flexibility to respond to any shock to growth and consumption. This is what we call disciplined optionality.

Monica Defend, Head of Amundi Investment Institute

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*Diversification does not guarantee a profit or protect against a loss. 

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 1 May 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 1 May 2026

Doc ID: 5448365