Market Update: Holding steady through a sluggish forecast

Markets experienced some June gloom in the wake of further interest rate hikes from central banks and lower economic growth forecasts.

Global growth is set to slow to 3% this year and 2.8% in 2023, according to the organisation for economic development (OECD). The ongoing war in Ukraine has added to the slowdown, along with high inflation following the pandemic. Supply chain issues caused by lockdowns in China are also having an effect on the global economy’s ability to bounce back and are predicted to continue into 2023. The World Bank echoed the OECD’s sentiment by lowering its forecast for global growth to 2.9% from 4.1% for the rest of 2022.

Key takeaways

• Markets fall in June
• Europe braces for late summer rate rises
• UK growth forecast slows
• China shows some positive signs

Download the Market Summary for June 2022 here