Investors waiting for the moves of central banks

"The rhetoric of the MPC and the president of Glapiński has changed significantly. Currently, the inflation projection for 2022 is 7.6 percent, and further increases are likely," Maciej Kik, manager of Generali Investments TFI equity funds, noted.

As he emphasized, inflation is currently the keyword in many markets, not only in Poland but also in the United States, where stock markets are clearly waiting for the Fed's reaction. The Federal Reserve has already announced three interest rate hikes this year.

"After inflation in the US reached 6.8 percent in November last year – not recorded there for 40 years – the perception is spreading that the Fed is late in decisively responding to the readings of this indicator. Since macroeconomic indicators are very good, the markets are starting to discount the faster and more aggressive monetary tightening. Although the Fed has announced three interest rate hikes in 2022, more and more large financial institutions like Goldman Sachs are already forecasting four hikes this year," Maciej Kik added.

(Newseria)