The latest updates and articles from Arbuthnot Latham
Despite the challenging outlook, the ECB remains likely to further hike interest rates in the months ahead.
The Bank of England raised interest rates by 0.50% this week, the largest hike since in 27 years, to take the Bank rate to 1.75%.
The US central bank raised rates by a further 0.75% this week as they continue their aggressive path of policy tightening.
The European Central bank hiked interest rates for the first time in over a decade, by 0.50%, as they move away from the historic negative rate environment.
Market turmoil continues, driven by increasing concerns over the global growth outlook and heightened recessionary fears, with ongoing supply issues exacerbating the challenges.
Growing recession fears are driving a general risk-off sentiment in the market, leading to further weakness in global equities and strengthening the US dollar.
The governors of each major central bank have been speaking this week and reiterated the challenges facing policy makers, as they balance the risks of fighting inflation without pushing the economy into recession.
UK headline inflation hit a fresh 40-year high of 9.1% last month, adding further pressure on the Bank of England to take stronger action.
The US central bank raised interest rates by 0.75%, its biggest hike in nearly 30 years, as they continue their aggressive path of policy tightening.
The European Central Bank, at yesterday’s policy meeting, confirmed they are aiming for an initial rate increase in July, followed by a potentially larger move in September as they finally move away from negative interest rates. They will also end their QE bond buying program.
The hugely uncertain global economic outlook continues to drive highly volatile and low conviction markets.
A mixed set of economic data for the UK this week will only add further pressure on the Bank of England, as they balance the risks of raising interest rates to fight surging inflation, against killing off growth and pushing the economy into recession.
