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Core Inflation, Rising Rates Remain Main Credit Risks
Inflation and interest rates remain the most significant watch item for global credit, Fitch Ratings says in its latest Risk Headquarters report. Core inflation remains sticky and well above central bank targets despite headline disinflation gaining pace in the US and eurozone in 2Q23. The underlying macro picture for global credit has improved since the beginning of the year, although tighter lending conditions and hawkish central bank policy underscores the outlook for a cyclical deceleration. According to Fitch’s base-case forecasts, this will include a shallow recession in the US, limited growth in the eurozone ... (full story)