Ignacio Saralegui, Senior Investment Strategist, Vanguard Latin America
Bárbara Grande, Investment Strategist Analyst, Vanguard Latin America
High inflation has led to a marked slowing in global economic activity. The rapid monetary tightening aimed at bringing inflation down will ultimately succeed, but at a cost of a recession in many economies. Financial markets have begun to price in our somber economic forecast and tensions in the banking sector are symptomatic of this stage of a hiking cycle.