Insights

Controlling the Bab Al Mandab strait: the key to avoiding stagflation?

Controlling the Bab Al Mandab strait: the key to avoiding stagflation?

The Houthi rebel attacks on vessels in the Red Sea are of significance and whilst the West seems to be in control of the Bab Al Mandab strait currently, we believe if that changes and supply chains become disrupted inflationary pressure will follow and either delay interest rate cuts or lead to sharp hikes.

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