The CEO of First Financial Markets, Nadeem Al-Sabaa, said that Andy Burnham becoming Prime Minister in Britain will not significantly affect the British economy compared to the impact of monetary policy developments.

Al-Sabaa added, in an interview with Al Arabiya Business, that markets are awaiting the Bank of England's plans to deal with the current chaos, especially since the bank does not have much flexibility given the current economic developments.

He explained that markets see there are more important matters than political speeches or promises, with focus on the developments of the Iran war, oil prices, inflation rates, and their impact on central bank policies.

Al-Sabaa said that markets are dealing with the reality that the Iran war has not ended, and central banks are handling economic developments according to this principle, so the US Federal Reserve is building its expectations on a period that may extend to a year and a half.

He added that central banks expect a new wave of inflation even if oil prices decline, so the closest scenario is raising interest rates in the worst case or keeping them unchanged in the best case.

He explained that central banks are acting according to a scenario of continued war or even limited strikes, and thus it is expected to continue tightening monetary policy globally.

Al-Sabaa said that the Iran war is the most important factor influencing current economic movements, whether in currency, metals, or oil markets, and ending the war would lead to a reduction in the severity of many economic crises.

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