Triple tightening blow threatens reflation; Asia’s borrowing outlook
Friday 4 March 2022 – Vol.13 Ed.9.5
Commentary: Financial markets need stimulus to stay on
By Neil Williams in London
A triple blow of policy tightening will test the two-year-old ‘reflation trade’ put on by many asset managers. Yet, by exacerbating stagflation and jittery stock markets, central banks and governments will hold back from reaching anything close to historical monetary and fiscal policy norms. Policy-makers are talking ‘correction’ and hopes of reflationary wage growth may be trampled if liquidity and stimulus dry up.
Read the full commentary on the website.
Podcast: AIIB’s outlook for borrowing in 2022
Domenico Nardelli, treasurer at the Asian Infrastructure Investment Bank, joins Marcin Stepan, managing director of OMFIF’s Sovereign Debt Institute, to discuss the borrowing landscape in Asia. In the current potentially volatile environment, with risks of raising rates challenging market conditions, they discuss the AIIB’s issuance ambitions and strategies. They reflect on the growth of the green, social and sustainable bond market and take a look at some important developments for 2022.
Listen to the podcast on the website.
