It’s been a momentous few weeks in the world of central banking. Persistent price pressures have prompted a hawkish shift almost across the board and we now anticipate the most aggressive and synchronised tightening cycle since the Volcker shock of the early 1980s. The key question now is not whether central banks will slam on the brakes, but what might stop them? We doubt that the inflation picture will improve very much in the near term, but weakening activity should generally cause a slowdown in the pace of tightening later this year.
Asia Drop-In (30th June, 09:00 BST/16:00 SGT): Are Asia’s central banks behind the curve? Can the Bank of Japan and People’s Bank of China continue to go against the grain? Find out in our special session on what global monetary tightening looks like in Asia. Register now.
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