"Renowned economist Jim O’Neill spoke last week of his confusion over the path of inflation in the UK. It is simply unclear whether inflation in the UK is temporary or not.

This means that predicting how the Bank of England will manage monetary policy in 2022 is impossible to predict.

O’Neill believes that the era of loose monetary policy that actually preceded the Coronavirus Pandemic has run its course and the time is fast approaching when it needs to be tightened up.

The pace of the recovery in many developed nations, coupled with supply chain shocks, has led to the current inflationary spike, but the generosity of Central banks is no longer applicable.

There is no sign of any concerted cooperation with G20 to ensure that the global economy emerges from the pandemic able to promote activity elsewhere. This was a feature of the policies adopted in the period from 2008-2010.

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Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.