1. Creative politics…
Belarus President Lukashenko has found the solution to inflation, as the country sees annual inflation coming in at 19% for 2022. Just ban price rises! Why didn’t we think of that.
Source: Reuters
2. Phrase of the year…
We could be calling it early, but ‘fed pivot’ might be the phrase of 2022? And is it just us or could the ‘fed pivot’ be the next viral TikTok dance…
And just a reminder of why our RBA has ‘pivoted’ sooner than expected. We are only now seeing the first rate hike in May flow through in higher loan repayments according to CBA’s 3-month lag. Tuesdays 25bp hike will hit accounts in January.
Source: Google
CBA rate hike lag
Source: CBA
3. So long shipping shortages…
Data from global shipping company Hapag-Lloyd shows global Air & Sea freight volumes are normalising back to pre-Covid levels quicker than anticipated. And interesting to note the global orderbook has built up quickly, suggesting we may have already passed the Christmas peak for shipping rates. There’s also set to be a flood of new shipping capacity coming on-line in 2023/2024.
Source: EAP, Hapag-Lloyd