Inflationary forces set to overpower disinflationary trends

We think the economy has reached a turning point where higher interest rates may be here to stay, which has implications for how we manage interest rate risk. The impact of inflationary and disinflationary crosscurrents will vary, but the underlying forces have shifted from almost entirely disinflationary to mixed. We think inflationary pressures, such as the reversal of globalisation and the end of consumer deleveraging, could eventually outweigh disinflationary forces.