Summary
- Interest rates rose more than most predicted, and inflation continued its decade-long ability to surprise forecasters.
- Implicit in both projections is that inflation has peaked, and the majority of rate hikes are behind us.
- In our view, it would be more prudent to focus on asset allocation and consider an increase in higher-quality fixed income sectors, including GCC bonds or global sukuk, that look poised to better defend portfolios and provide attractive levels of income.
For further details see:
What's In The Price? MENA Fixed Income Outlook For 2023