Inflation will keep driving markets lower, says Amundi’s Blanque ...Qatar

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Inflation will keep driving markets lower, says Amundi’s Blanque
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 prioritising nominal growth and “tolerating” higher inflation with relatively low real-interest rates, he said. This adjustment to higher-for-longer inflation, following a decade where US headline inflation averaged 2%, will involve a complete rethink in valuations from the equilibrium price-to-earni

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