WS #16291
Global macro conditions are tightening as central banks prioritize inflation control over growth. The Reserve Bank of India has hiked rates, and the Reserve Bank of Australia faces high probability of a November hike despite rising unemployment. Concurrently, the world's largest wealth fund reported a $30 billion loss from bond market turbulence, indicating that fixed-income assets are no longer a safe haven in this inflationary and volatile environment.
Global Macro and Central Bank Hawkishness
Global macro conditions are tightening as central banks prioritize inflation control over growth. The Reserve Bank of India has hiked rates, and the Reserve Bank of Australia faces high probability of a November hike despite rising unemployment. Concurrently, the world's largest wealth fund reported a $30 billion loss from bond market turbulence, indicating that fixed-income assets are no longer a safe haven in this inflationary and volatile environment.