Global activity monitor: Volatility swoon - ANZ
The ANZ Global Lead Index (GLI) and Growth Trackers continue to show that global growth is broadly based and above trend, notes the research team at ANZ.
Key Quotes
“With output gaps closed in some economies, inflation pressures could become more persistent.”
“The recent spike in financial market volatility means financial conditions are less supportive of activity, though they’re still easy. A period of sustained heightened volatility would probably weigh on growth.”
“Financial markets should expect higher volatility relative to recent years as central banks slowly start to normalise policy. Provided the rise in inflation is gradual, so too should the pick-up in volatility, and this shouldn’t be disruptive to growth.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
