Global Asset Allocation: The view from the UK

A widening gap in monetary policy is likely ahead as the Federal Reserve (Fed) is expected to pause after May and the Bank of Canada remains on hold, while the European Central Bank and Bank of England remain hawkish. Meanwhile, increased uncertainty around the Bank of Japan persists under new leadership as they evaluate yield curve control policy. Key risks to global markets include central bank missteps, resilient inflation, steeper growth decline, a broadening banking crisis and geopolitical tensions, says Yoram Lustig, head of multi-asset solutions, EMEA at T. Rowe Price.