Inflation is high globally and has risen further in recent months. Strong demand, supported by monetary and fiscal stimulus, has come up against global supply capacity that continues to be impaired by the COVID-19 pandemic. In addition, some energy and food prices are higher as a result of Russia’s invasion of Ukraine. Inflation has already reached 7–10 per cent in many economies and is expected to peak later and higher than previously thought. Unemployment rates remain around generational lows in most advanced economies. The rapid increase in the cost of living is reducing real incomes. High inflation has also led central banks to increase interest rates quite quickly. Together, these developments are weighing on the outlook for global growth. The slowing in growth is expected to be driven by an easing in household consumption growth. Lower asset prices could also contribute to the downward pressure on consumption. Consumer confidence has fallen sharply in many countri tweet at 9:33pm: RBA: Board Expects To Take Further Steps To Normalise Policy, But Not On A Pre-Set Path - Market Pricing Assume Rates Reach 3% By End 2022, Decline A Little By End Of 2024 tweet at 9:32pm: RBA: - Slowing housing market is headwind to household spending - Restates rates expected to rise further, no pre-set path - BBG tweet at 9:33pm: RBA Downgrades Outlook For Economic Growth, Revises Inflation Forecasts Sharply Higher - CPI Inflation Seen At 7.75% End 2022, 4.25% End 2023 tweet at 9:33pm: - 2022 GDP growth forecast falls 0.5% to 4.0% - Assumes 3% cash rate at end of 2022 - BBG