Not so fast – Investment Clock economic update

Delta looks set to dent growth, but reasonable, though slower, rates of growth look likely over the rest of this year into 2022. That reflects supports in place – from accommodative monetary policy and strong aggregate household balance sheets to significant vaccination coverage in developed economies.

However, central banks in the US and UK are edging closer to tightening monetary policy; fiscal policy is set to become less supportive. High inflation is still assumed transitory, but strong short-term inflationary pressure may persist well into 2022 as supply chain problems and labour market shortages linger.

Read in full: Not so fast – Investment Clock economic report