Bank of England doubles down in its battle with inflation
Five key insights on the BoE interest rate hike
Transitory Shock or Long-Term Crisis?
A confluence of factors is driving an unprecedented and destabilizing surge in prices across the global economy.
Russia’s invasion of Ukraine and deglobalization—including the reshoring of manufacturing activities and financial decoupling—are leading to widespread inefficiencies, bottlenecks, and a disorderly reorganization of both sprawling supply chains and capital flows.
Underpinned by energy and food-supply shocks, as well as surging wages, inflation has reached levels not seen in four decades. Meanwhile, fading fiscal and monetary stimulus, rising interest rates, and the unwinding of central bank balance sheets have created headwinds for economic growth and aggregate demand.
Worryingly, all these together may bring about an unwelcomed economic dilemma: stagflation, an environment of persistently high inflation and low growth.
Navigating the uncertainty, volatility, and risks of an inflationary or stagflationary market regime will likely be the defining challenge for long-term investors in the years ahead. To make the most of the fleeting opportunities that will arise, allocators of capital will need partners who can pair deep capital-market expertise with a long-term, diversified global perspective. At PGIM, our investment professionals have the conviction of weathering over 30 distinct market cycles by using an active approach across public and private asset classes, regions, sectors, and themes.
Five key insights on the BoE interest rate hike
David Hunt joins “Financial News” for a discussion about PGIM’s businesses, growth in private credit, and the tremendous opportunities that exist in the UK.
The ECB raised interest rates by an outsized 0.75% at its September policy meeting while stressing that the end of the hiking cycle was still ”so far away."
A powerful combination of surging inflation and soaring energy prices, along with a war in Europe, may be leading the global economy to a painful economic slowdown. Watch the webinar replay to hear PGIM experts explore the risks, opportunities, and the potential ways investors can build a portfolio to be well-positioned in this complex environment.
Investors may be looking back at the days of disco with a sense of déjà vu. Surging inflation, rising energy prices and the prospect of higher interest rates have sent a ripple through global financial markets – just like they did in the 1970s. In the Season 2 premiere of The OUTthinking Investor, we talk to PGIM experts to better understand today’s inflationary shock and how it will play out for investors.
Global inflation has shot up in the past year to multi-decade highs. But why has this happened and where do we go from here?
The evolution of the Fed's reaction function, Fed funds estimates under varying inflation conditions and scenarios that could prompt the Fed to adjust policy.
Highlighting the potential consequences for inflation in the euro area over the transition period to net zero, and implications for monetary policy.
Be wary of economic growth sensitivities in your real asset portfolios if the economic environment were to be stagflationary.
PGIM Quant’s Ed Keon shares the Multi-Asset team's views on the most recent rate hike.
The Fed assumed an even more aggressive stance at its June 15 meeting in light of persistently high and broad-based inflation readings.