Markets have been in a febrile mood amid a growing belief that central banks will need to keep interest rates at elevated levels in order to properly throttle inflation. But are expectations that interest rates will remain high misplaced? Does that in turn suggest that markets could see a reversal once economic conditions weaken more significantly?
Senior economists from our Global, Markets and Commodities teams held a special online briefing about what to expect from major developed and emerging economies, and from bonds, equities and commodities, in the coming months.
During this 20-minute session, the team answered client questions as they highlighted key takeaways from their recently published Q4 Outlook reports. During this briefing, the team addressed:
- The scale of the economic weakness about to hit developed economies;
- How quickly central banks could act in response to evidence of disinflation;
- The outlook for equities, bonds and energy prices as growth slows and inflation cools.