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Fears of a ‘hard landing’ in the global economy are swirling, as central banks hike interest rates to cool inflation.
“Interest rates have risen substantially in this cycle and some additional tightening may yet be ahead of us. In light of this, a mild recession remains likely, as a baseline assessment.
In the wake of this, it is understandable that markets will look to price lower rates in 2024, as long as inflation is seen as back under control at this point.”
“The more tightening that people feel motivated to do, the more uncertainty around these lags and the greater risk to more extreme economic outlooks.”
“We would argue that the market may still be too confident in the quality of central bank decisions and their ability to engineer positive outcomes.
We think the market is a bit too optimistic about central banks’ ability to cut policy rates as quickly as the yield curves are implying.”
Everybody gets used to it, and nobody wanted to work. What do you think follows? It is the definition of inflation, because suddenly the currency doesn’t represent the same amount of value.
You have diluted it with all you have given away. Does he [Sunak] think it never has to be paid back? Does he think about inflation?”
