Analyzing Economic Factors in Capital Market Expectations

In today's financial environment, the interplay between monetary policy, fiscal policy, and economic data is critical for shaping capital market expectations. As a financial analyst, you are required to construct a brief analysis considering the current trends in inflation, interest rates, and economic growth in your country. Discuss how these factors influence capital market expectations for equities and fixed income. Be specific in outlining the relationships and implications for investment strategies that your firm might consider.