NZAC - The Global Economic Climate Is Shifting As Fighting Inflation Gains Urgency

• Russia's war with Ukraine and recent lockdowns in mainland China have further disrupted supply chains, adding to cost pressures.
• The US Federal Reserve raised its policy rate by 75 basis points at its mid-June meeting and signaled its determination to return inflation to 2%, acknowledging it expects unemployment to increase.
• The persistence of high inflation is prompting central banks to tighten policies more aggressively to cool demand amid ongoing supply disruptions.

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