Investments / Economy

Confluence of headwinds sees Q2 GDP contraction, but decline not a game changer

Economies at a glance - for August 2022

Global gasoline prices, recession fears and possible Eskom related downgrades

Concerns about higher inflation, rising interest rates and a looming recession have dominated markets recently.

Walking the inflation and interest rate tightrope

Central banks such as the Bank of England (BoE), South African Reserve Bank (SARB) and US Federal Reserve (Fed) are treading an inflation and interest rate tightrope as they attempt to rein in inflation without ruining post-pandemic economic growth. “The policy dilemma for central banks is controlling inflation without ruining economic growth; and that is an increasingly narrow path along which they walk,” said Richard Carlyle, Equity Investment Director at Capital Group, during his presentation to the 2022 PPS Retirement Summit. Capital Group, which is considered the world’s largest active equity manager with more than USD2.6 trillion in assets under management, has managed the PPS Global Equity Fund since 2019.