Market divided over interest rate outlook, tightening: Andrew Holland

The main worry for the markets remains a policy misstep by central banks in not tackling inflation or being too aggressive, leading to a sharp economic slowdown, says Andrew Holland

It has been a topsy-turvy road for the markets over the past few weeks as they grappled with multiple headwinds. Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies, tells Puneet Wadhwa that as a fund, Avendus Capital has kept its hedges and cash high which provides it with the flexibility to move back into the market more constructively once uncertainty is over. Edited excerpts:

To what extent are the markets factoring in what the US Fed and other global central banks will do over the next few months? Any worrying points?

The market remains divided about the outlook