The three major central banks issued restrictive signals last week. The banks have succeeded in changing the course of their monetary policies without harming the markets.
After well-orchestrated communication in recent weeks, the Fed has hardly surprised investors by adopting a much less accommodating, much more “hawkish” tone. The Fed is accelerating the normalisation of its monetary policy on the back of high inflationary pressure and a favourable economic environment. The Fed sold and the market bought the story that a short, rapid rate hike cycle will be enough to stem these inflationary pressures.
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