APAC execs warn against complacency on inflation
Andrew Zurawski thinks investors should consider medium-term inflation risk.
Asset owners and analysts in the Asia-Pacific region are expecting an ephemeral spike in inflation this year but gatekeepers warn that the potential for longer-term challenges should be shaping asset allocation decisions.
While it s far from a certainty, we re definitely acknowledging the heightened risk of inflation over the medium term and we re advising clients to think about positioning for that, said Andrew Zurawski, associate director in Willis Towers Watson s research team in Hong Kong.
In the wake of last year s unprecedented monetary and fiscal policy response to the pandemic, the prospect of central bankers falling behind the curve in controlling inflationary pressures is a risk that we can t be complacent about, agreed Cameron Systermans, senior portfolio manager and head of mainstream investments, Japan with Mercer Investments (Japan) Ltd.