Strategy & market update

Central Banks: Nearing the Finish Line of Their Mission

Having adjusted their monetary policies to counter inflation, central banks are now witnessing the conclusion of their tightening cycle. Inflation is receding, and although the global economy has experienced some weakening, it has successfully weathered the recent stress test.

The global economy has displayed remarkable resilience over the past year, overcoming various challenges such as the conflict in Ukraine, inflationary pressures, and the substantial monetary tightening implemented by major central banks. The robust economic performance owes much to the strong financial position of households: with unemployment rates at historic lows, wage growth, and the surplus savings accumulated during the pandemic, workers have maintained a high level of consumption despite a somewhat challenging environment.