This week’s news centered around continued upward inflation pressure and the response from those central banks with still accommodative stances. The ECB made a significant shift this week and now looks likely to hike 125bp before year end. The RBA is also front-loading its rate hikes with the Fed set to deliver a 50bp hike with the promise of more to come. This dynamic is unlikely to change until growth slows materially, a development we now expect for the US during 2H22.

Speakers:

Bruce Kasman

Michael Hanson

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