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ECB Confronts Global Rates Upheaval As German Inflation Soars
Over the past several weeks, traders began pondering active central banks and preemptive policy tightening in the face of surging inflation. Even the ECB was swept up in the global front-end rates upheaval.
Headed into Thursday's October policy meeting, markets priced in as much as 20bps of rate hikes from Christine Lagarde and co. by the end of 2022.
At September's meeting, the ECB attempted what I characterized as a "sorta taper." The bank tipped a "moderately lower" pace of purchases under
The cure for higher prices is higher prices. Exhibit A: U.S. GDP in U.S. slows to 2% (the new normal?). I do believe Chair Powell and the Fed will proceed as outlined: announcement of taper in Nov., gradual tapering in 2022 (with optionality implied), first rate hike sometime in 2023.
Like your forecast unless some bad s**t happens then sooner?