The forecasted interest rate cuts that were hoped for by many governments to kickstart growth as higher inflation squeezed real wages, dampened consumption, and raised companies’ input costs are now failing to appear.
“The oil price shock is hitting world growth prospects and increasing downside risks. But we are also amid a very pronounced boom in global spending on IT, and that is cushioning the impact on activity in the near term, particularly in Asia,” said Brian Coulton, Chief Economist, Fitch Ratings.
Speculation for the US is that a meeting next week could see an interest rate hike.
This will be relevant to insurers, especially those with heavy investment in fixed income.
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