Balance of risks facing global economy now slightly more negative - Deutsche

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People wearing face masks walk at a main shopping area, following the coronavirus disease (COVID-19) outbreak in Shanghai, China January 27, 2021. REUTERS/Aly Song

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LONDON, July 6 (Reuters) - The balance of risks facing the global economy are more negative than previously, given the global spread of the Delta variant of the COVID-19 pandemic and the reaction to the June Federal Reserve meeting, Deutsche Bank said on Tuesday.

In its latest House View note, Deutsche Bank said that it believes inflation remains transitory but the risks are building "to the upside."

The bank said it expected COVID-19 to remain in focus because a global decline in cases since April has stalled and the more-infectious Delta variant has emerged.

"With vaccination rollouts now in an advanced phase across many developed countries, one of the biggest questions soon will be the extent to which governments and citizens are prepared to live with the virus," the note said.

"That answer will have crucial implications for the shape of the recovery and the new steady-state we're heading to."

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Reporting by Dhara Ranasinghe, editing by Kirstin Ridley

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