Tag: market inflation

Equity markets have been under considerable selling pressure in 2022, as investors anticipate that stubbornly high inflation will cause central banks to raise short-term interest rates multiple times this year. At the same time, expectations for global economic growth have been revised downwards, following further disruptions to global supply chains on the back of Russia’s invasion of Ukraine and China’s strict COVID-19 lockdown measures.

Major central banks have combined with structural trends (slowing developed market population growth, globalisation, and technological innovation) to almost eradicate developed market inflation volatility over the past 50 years or so.