Welcome to the last edition of THE TREASURY HUB Banking and Treasury Markets Bulletin of 2021. Interest rates will be top of the list of items to watch in 2022, especially after the hike by the Bank of England at the December meeting. GBP Libor will be no more as of the 1st January 2022. Whether inflation is sustained during 2022 will be a key driver of central bank decisions.
On the currency front, GBP had a much better year with most of the Brexit-related uncertainties out of the way. USD also had a strong year primarily driven by rising interest rates (and expectations of same). From an investment perspective, stock markets performed very well over the year but the big story was the large increase in Oil prices given the wide knock-on effect of this. Section 5 in this Bulletin looks ahead to 2022 and what the new year might look like for the banking and treasury markets.
Please get in touch with our Corporate Finance team if we can be of any assistance.
The Treasury Hub - Banking and Treasury Report December 2021 can be downloaded here.
For any queries relating to this newsletter, please contact Chris Ball, Partner.