Only 10% of investors see risk of deflation, study shows

Wednesday 28 April 2021 11:22 CET | News

Four in five investors see inflation as far more likely than deflation, according to a new survey by German lender Deutsche Bank.

A vast majority of investors (81%) agree that inflation is more likely after the pandemic while only 10% thought we would see deflation, according to Deutsche Bank. The survey was conducted in April 2021 and covered about 700 global investors.

Some 43% of investors responded that higher-than-expected inflation and rising bond yields pose the biggest risks to market stability. Most respondents see US inflation averaging above the US Federal Reserve’s long-term target of 2% but remaining under 3%.

About 61% respondents saw no risk of major market convulsions in 2021 due to any plans by Federal Reserve officials to taper their asset purchases of USD 120 billion per month. In 2013, a Federal Reserve-induced ‘taper tantrum’ sent traditional markets into a tizzy. Some 21% said a taper tantrum would happen this year, while 18% said they did not know.

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Keywords: survey, Deutsche Bank, banks
Categories: Banking & Fintech
Countries: World
This article is part of category

Banking & Fintech