You do expect inflation um Or you see inflation being mispriced by Markets right now in the near term And the medium term what should Investors do about that Well right now in the near term there's A lot of uncertainty Because the reopening dynamics which is Very different from a typical recovery Will bring supply demand back online In very unpredictable terms so i would Say that in the near term yes We do expect inflation to overshoot fed Targets But there's a huge amount of uncertainty In terms of the persistence Of that of that overshoot in the medium Term however Our conviction is higher for inflation To Kind of gradually come through and here We see inflation in the medium term Five to 10 years being underappreciated By market because As supply chain moves from being cost Efficient To focusing on resilience that would Push up Inflation production cost and pushing up Inflation expectation And at the same time thinking about the High debt levels That we have the cost of kind of a Rate rising in response to inflation
Going higher And what that means for that servicing Is just too high For us to feel quite confident that Rates are not going to rise Significantly in response to inflation Rising Fast because of the consideration around Kind of That servicing side of things so all of That Putting them together means That we think medium-term inflation is Underappreciated
