Seeing all of you here once again validates my theory that indeed there is a strong correlation between volatility and attendance in a forum like this one – to listen to the central bank talk about uncertainty. From a smaller function room downstairs where we used to hold this forum, we have been kicked upstairs to this ballroom.
With most central banks raising their policy rates to control inflation, global financial conditions have tightened rapidly. The global economy is slowing, and we revised down our projection for global growth. We also noted the emergence of financial stresses in some markets in recent months. A number of indicators suggest that global supply disruptions are easing.