The breakout of US inflation to a 30-year high and broadening of price pressures globally have challenged the central bank narrative that inflation is transitory. Nevertheless, several central banks, led by the Fed and BoE, have made it clear in recent weeks that their priority remains healing job markets, rather than fighting near-term inflation pressures.
The decidedly dovish near-term monetary policy outlook, combined with the surprisingly strong rebound in US job creation in October, leave us constructive on risk assets over the next 6-12 months.
Speakers:
- Manish Jaradi, Senior Investment Strategist, Standard Chartered Bank
- Abhilash Narayan, Senior Investment Strategist, Standard Chartered Bank
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