If this happens, central banks will stop raising rates, and recessions, where they occur, will likely be modest. However, if inflation does not start to slow, we are looking at an uglier scenario, says Karen Ward, JP Morgan’s chief market strategist for Europe, the Middle East and Africa.
If inflation starts to behave as economic activity slows down, central banks will stop raising rates and recessions will likely be mild
Will it or won’t it? The most important question in the coming 12 months is “actually quite straightforward”, insists JP Morgan Asset Management: Will inflation start to behave as economic activity slows?
