Markets risk underpricing the scale of rate hikes, analysts say
Increased hawkishness amongst central bankers suggests rate hikes will come faster and more frequently, Deutsche Bank analysts wrote.
Markets may be underestimating the impact of forthcoming monetary tightening, according to analysts who warn of a "globally synchronised rate hiking cycle." Deutsche Bank economists highlight the potential for rising inflation due to recent trends in commodity prices and a booming AI investment cycle, all while central banks take a more hawkish stance compared to their pandemic-era reactions.
The combination of steady economic growth, persistent conflict-induced energy supply shocks, and stubborn inflation is expected to bring about a "structural transformation of the economy," according to one economist speaking to The Associated Press.
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