Inflation dilemma: where now for central banks and fixed income?
In this paper, Jim Cielinski, Global Head of Fixed Income, considers the potential pitfalls and impact on fixed income.
- The trajectory of change as central bankers doubt their own “transitory” story, plus the growing divergence at policy level.
- The potential for policy error as economies adjust to the tailwind from reopening but face offsetting headwinds from fiscal drag, a squeeze on real incomes and growing cost pressures on corporates.
- The potential implications for rate sensitive and riskier credit assets.