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Hmm…The title of Nomura’s Americas Morning Comment is: Central Banks Getting More Hawkish?
This is based on two datapoints:
- In Sweden, the Riksbank decided not to cut rates today, contrary to the expectations of many, who were looking for a 25 basis point cut.
- At the Bank of England, there is now only one board member favouring more QE. The famously dovish Adam Posen now doesn’t support more easing.
Anyway, on the internet, two makes a trend, so there might be something to this creeping hawkishness idea.
On the other hand, just yesterday we got that big rate cut from the Reserve Bank of India, so the nascent hawkishness is clearly not a global phenomenon.
Anyway, we’ll keep an eye on this. Of course what really matters is not the Riksbank, but the next actions of the Fed, and on that front, it still is anyone’s guess.