Central banks: a successful hawkish turn

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.

You can now read the full whitepaper at the link below