Opinion
New normal of high rates will curb relief rally
Asset prices have to adjust down to lower levels because of higher cash rates, and future capital gains will be anaemic at best.
Christopher JoyeColumnistFinally, we have a US inflation print that materially undershoots market expectations. And it comes at the perfect time for the long-anticipated “pivot” by the US Federal Reserve, triggering an exceptionally strong bounce in equities and correlated crypto.
On Thursday night, core inflation in the US printed at 0.3 per cent for October (0.27 per cent to two decimals), significantly below consensus projections around 0.5 per cent. Year-on-year core inflation likewise underwhelmed the consensus forecast of 6.5 per cent, coming in at 6.3 per cent.
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