Inflation Will Keep Driving Markets Lower, Amundi’s Blanque Says
- Ex-Amundi CIO sees entrenched CPI despite central bank action
- Markets pricing in an overly swift retreat of price pressures
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The Western world can expect to live with inflation running between 4% and 5% for years, and sharply lower asset prices as a result, according to Pascal Blanque, chairman of the Amundi Institute.
The new environment comes as policy makers balk at the risks to growth needed to quash decades-high price growth, said Blanque, a former chief investment officer of Amundi SA. Central banks will end up prioritizing nominal growth and “tolerating” higher inflation with relatively low real-interest rates, he said.