Ekonomické zprávy
17.11.2021

Current high inflation is likely to persist - UBS and DBS

Given expectations that inflation will continue to rise, the heads of the two global banks believe that the current situation may portend an uncertain period for the global economy.

UBS Group Chairman Axel Weber noted that "uncomfortably high" inflation rates may be recorded globally within one to three years. Meanwhile, Piyush Gupta, Chief Executive Officer of DBS Group, warned that inflation is starting to show an increasingly structural nature.

PIMCO Managing Director John Studzinski also expressed concern about inflation, pointing out that in the US it is at its highest level in more than 30 years. In addition, he warned that inflation is likely to remain high in the foreseeable future and will be very unstable for some period of time.

Against the background of the fact that the economy is coming out of the coronavirus-related blockages, prices for raw materials and transport, as well as energy resources, have risen sharply, as a result of which supply chains have come under pressure.

Experts note that although an increase in interest rates by Central Banks may support bank lending, such a move may have a negative impact on stock markets.

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