Over the past few months, we had been expecting the major economies to head into a recession. We also expected that the impact of shocks to the global economy, including supply chain disruptions and Russia’s invasion of Ukraine, would begin to dissipate. Consequently, we expected inflationary pressures to begin receding.

In short:

·         Central bankers reaffirm their hawkish intentions

·         The global economy comes under pressure from a record energy shock

·         Sentiment fades as growth prospects worsen

In short: