Monday, May 23, 2022
  • Login
CEO North America
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • Executive Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
  • Home
  • Business
    • Entrepreneur
    • Industry
    • Innovation
    • Management & Leadership
  • Executive Interviews
  • CEO Life
    • Art & Culture
    • Food
    • Health
    • Travel
    • Environment
  • Opinion
  • News
  • Multimedia
No Result
View All Result
CEO North America
No Result
View All Result

Outlook 2022: The Long Road to Higher Rates

in Opinion
Cop president daily media statement and latest announcements
Share on FacebookShare on Twitter

Although the fastest pace of recovery now lies behind us, we expect strong global growth in coming quarters, thanks to continued medical improvements, a consumption boost from pent-up saving, and inventory rebuilding. For 2022 as a whole, global GDP is likely to rise 4½%, more than 1pp above potential.

The major DM economies should grow rapidly through midyear and then moderate gradually as the near-term impulses wane. In EM, we expect comparatively sluggish performance in China, where the property market is likely to soften further and macro policy looks set to ease only modestly, and in Brazil, where financial conditions have tightened sharply and a potentially messy election looms. By contrast, we are more optimistic on India because of significant catch-up potential and on Russia because of a boost from the oil and gas sector.

The biggest surprise of 2021 has been the goods-led inflation surge. This recently prompted us to pull forward our forecast for Fed liftoff by a full year to July 2022. Subsequently, we expect a funds rate hike every six months, a relatively gradual pace that assumes a normalization in goods prices and in overall inflation (albeit later and more partial than we previously thought).

By the time Fed hikes get underway, some advanced economies (including the UK and Canada) should be well into the interest rate normalization process, and a number of economies in Latin America and Eastern Europe may already be approaching its end. By contrast, we think the ECB and RBA are still far away from hiking rates, and markets seem to have overshot in their expectation of an imminent hawkish turn.

Beyond the next few years, we expect nominal policy rates across most DM economies to rise well beyond the rock-bottom levels now priced in the bond market. For one thing, inflation should settle ½pp above the pre-pandemic level on average, in part because central banks have tweaked their goals accordingly. Moreover, neutral real rates are more likely to rise than to fall, given increased political tolerance for budget deficits and climate-related investment needs.

(courtesy Goldman Sachs Research)

Tags: Higher RatesLong RoadOutllook

Related Posts

Ignoring ai is risky business for insurance ceos
Opinion

Ignoring AI Is Risky Business for Insurance CEOs

Work will never be the same—savvy business leaders are adapting to change that’s already here
Opinion

Work Will Never Be the Same—Savvy Business Leaders Are Adapting to Change That’s Already Here

Resilient austin becomes hot spot for the economic growth
Opinion

Resilient Austin Becomes Hot Spot for the Economic Growth

Hybrid hiccups: moving to distributed work in the public sector
Opinion

Hybrid Hiccups: Moving to Distributed Work in the Public Sector

What’s possible for the gaming industry in the next dimension?
Opinion

What’s Possible for the Gaming Industry in the Next Dimension?

Developing a digital mindset
Opinion

Developing a Digital Mindset

What utilities can do to secure the emobility future — and their own
Opinion

What Utilities Can Do to Secure the eMobility Future — and Their Own

Digital access for all
Opinion

Digital Access for All

How can you create a growth strategy where everyone wins?
Opinion

How Can You Create a Growth Strategy Where Everyone Wins?

Is crypto’s volatility bad for the financial system?
Opinion

Is Crypto’s Volatility Bad for the Financial System?

No Result
View All Result

Recent Posts

  • Russia Halts Gas Supplies to Finland
  • McDonald’s to Sell Restaurants to Russian Operator
  • Vintage Mercedes Sells for $143 million
  • Ignoring AI Is Risky Business for Insurance CEOs
  • UNWTO Launches Digital Futures Programme for SMEs

Recent Comments

    Archives

    Categories

    • Art & Culture
    • Business
    • CEO Life
    • Editor´s Choice
    • Entrepreneur
    • Environment
    • Executive Interviews
    • Food
    • Health
    • Highlights
    • Industry
    • Innovation
    • Issues
    • Management & Leadership
    • Multimedia
    • News
    • Opinion
    • PrimeZone
    • Printed Version
    • Travel
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    CEO Latin America | ES

    • CONTACT
    • GENERAL ENQUIRIES
    • ADVERTISING
    • MEDIA KIT
    • DIRECTORY
    • TERMS AND CONDITIONS

     

    AUSTIN

    600, Congress Avenue 14th Floor
    Austin, TX.
    78701
    USA
    +1 512 649 0340

    NEW YORK

    387 Park Ave South,
    New York, NY.
    10016
    USA
    +1 212 796 64 15

    CEO North America © 2022 - Sitemap

    No Result
    View All Result
    • Home
    • Business
      • Entrepreneur
      • Industry
      • Innovation
      • Management & Leadership
    • Executive Interviews
    • CEO Life
      • Art & Culture
      • Food
      • Health
      • Travel
      • Environment
    • Opinion
    • News
    • Multimedia

    © 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?