©Reuters. RBC BlueBay AM: Here’s what the four major central banks will decide this week
The meetings of the ECB and the Fed seem the most predictable (both are expected to raise rates by 0.25%), while the decisions of the Bank of England and the Bank of Japan are subject to a certain degree of uncertainty
Hopes for moderating inflationary pressure continued to support i global markets. Producer prices tend to decrease suggest that the cost of living may decelerate on both sides of the Atlantic in the coming months. In parallel, consumer demand remains robust, US growth forecasts continue to hover around 2.5%, and corporate earnings reports so far are relatively positive – a combination that has fueled optimism for a “soft landing” in the coming months.
RATES COULD RISE LONGER WITH NEGATIVE IMPACTS
“These hopes could however be dashed since i delays in tightening past policies should continue to weigh into 2024. Without a significant slowdown in the economy, inflation is unlikely to return to central bank targets. This leads us to believe that, in the absence of weaker data on the economy, rates could rise for longer with probable negative impacts” he underlines Mark DowdingFixed Income CIO, RBC BlueBay Asset Management...
** This article was written by FinanciaLounge