BlackRock director and investment expert, Karim Chedid, said this week is crucial for the euro and the European Central Bank At the upcoming meeting on interest rates.
Shadeed added in an interview with “Al Arabiya” today, Monday, that the European Central has high inflation on the one hand, and the higher the gas prices, the higher the inflation, and on the other hand, the rise in energy and gas prices leads to a decline in demand, and thus deepens the economic recession.
He explained that the markets are divided by 50% in their expectations of the European Central increasing interest rates by 50 basis points, and similarly expectations of an increase of 75 basis points, and therefore the euro is exposed to some losses.
Karim Shedid said that investing in corporate bonds is better than stock markets currently, because the trend of central banks to continuously raise interest rates does not help stock markets, but rather raises interest on corporate bonds, while there is confusion in European treasury bonds due to the problem of inflation, preferring European bonds over American ones. Because the European Central Bank may not continue to raise interest rates.
