Analyzing Macroeconomic Changes and Investment Strategy

Imagine you are a portfolio manager assessing the global economic landscape to influence your investment strategy. The economy is experiencing fluctuations in inflation rates across various countries. Recently, central banks have adopted divergent monetary policies: some are increasing interest rates to combat rising inflation while others are maintaining lower rates to stimulate growth.

As a portfolio manager, outline how you would approach analyzing these macroeconomic changes. Discuss the impact of interest rate changes on asset classes, the implications for currency exchange rates, and how these factors might alter your investment strategy.