Digital Banking and Financial Performance Review
Interest Rates and Inflation Highlights
Interest Rate
The global finance system was tested as Central Banks simultaneously hiked the
benchmark rate in response to inflation in an environment of slow growth. Financial
strain has typically followed periods of rapid interest rate increases.
Inflation
We anticipate that some emerging markets will prove resilient, however, downside
risks still predominate the outlook for easing inflation globally, as Central Banks
continue to respond to inflationary pressures by raising interest rates. High interest
rates mean high borrowing costs which pose a challenge to economic growth.
12.0
10.0
8.0
6.0
4.0
20
2.0
Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Source: Bloomberg, GTCO IR analysis
UK
USA
Jul-22
Aug-22 Sep-22 Oct-22 Nov-22 Dec-22
CHINA
ECB
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22
Jul-22
Aug-22 Sep-22 Oct-22. Nov-22 Dec-22
UK
USA
CHINA
FCB
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