The ECB is determined to tighten its monetary policy in the face of record high inflation levels.

We expect central banks to remain on the hawkish side as long as inflation expectations remain on the upside, as central banks are afraid of losing their credibility.

The Fed is determined to hike rates rapidly. In the short-term the US economy will be supported by the many cushions present in the economy, as a result of all the fiscal and monetary support provided during the Covid crisis. The Fed will be in a more difficult situation in 2023.

The invasion of Ukraine by Russian troops has caught Europe off guard, reminding it of the darkest hours before the Second World War.

2022 will be the “year of reckoning” for DM economies when they will test the effectiveness of the policies deployed since the peak of the pandemic phase and face the challenge of retuning to normality...

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.

US consumer prices jumped by 6.2% in October, their highest level in 30 years! Deteriorating inflation data have pushed markets towards forecasting a faster pace of tapering and a more rapid removal of accommodation in 2022.

Eurozone and US sovereign bond markets have partially reversed the decline recorded over the summer.

Central banks have put in place ultra-accommodative monetary policiesto support economies during the Covid crisis.