Ukraine war amplifies global inflation risks
Early quarter confidence that the world was in a recovery phase, as Covid risk abated, turned to investor angst with developments in Ukraine. The eventual Russian invasion of Ukraine has only amplified inflation risk in the global economy. Central bankers are clearly more concerned about the need to tackle the inflation threat than they have been for two decades. The increases in central bank policy rates put at risk global growth, indeed economists have been busy downgrading growth forecasts for much of the quarter. Read more in our quarterly investment update.