Written by Shane Balkham.
Another week was dominated by central bank meetings, interest rate decisions, and inflation forecasts. The underlying commentary remains unerringly similar, and it would have been a simple exercise to simply rehash a previous ‘The World In A Week’ from earlier this year.
The European Central Bank raised rates and signalled that further rate rises are likely. The Federal Reserve paused its rate hiking cycle, allowing it time to gather more data and reflect on its next actions. This was caveated with the likelihood that more rate rises could be needed in 2023. Mixed signals indeed.
The Bank of Japan meeting concluded with another month of inactivity, whereas the People’s Bank of China moved in the opposite direction and cut short-term borrowing rates, reacting to a broad slowdown in domestic retail growth.
Not every week delivers headlines that grab our attention, and it is important not to try and create or manufacture a story, as equally as it is not to become complacent. Maintaining an appropriately diversified outlook is critical to navigate turbulent and quickly changing markets and that is something we are highly committed to at YOU Asset Management.