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Vantage Point: Shifting Tides

In this edition of Vantage Point we revisit key questions from a quarter ago regarding the need for a recession to reduce inflation sustainably, potential inflation rebounds, and the idea of peaked rates. While these themes persist, we've adjusted probabilities for 2024 economic scenarios. Firstly, there is an exploration of global ‘Immaculate Disinflation’ whereby inflation falls steadily back towards target almost everywhere without necessitating a recession.

Secondly, we investigate ‘Unavoidable Recession’ whereby leaving monetary policy too loose for too long during 2021-22 has had inflationary consequences that can only be solved by tightening monetary policy sufficiently to create a (mild) recession. Lastly, we explore ‘International Divergence’ whereby this economic scenario is a combination of the previous two, in which the US undergoes a soft landing of sorts, while Europe and the UK move into recession in early 2024. 

 

 

Assessment of Value Report
October 2023

Welcome to our latest Assessment of Value Report.

 

 

 

The value of investments can fall. Investors may not get back the amount invested.
 

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA), BNY Mellon Fund Managers Limited (BNYMFM), BNY Mellon Fund Management (Luxembourg) S.A. (BNY MFML) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA, BNY MFML or the BNY Mellon funds.

 

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