Markets Price Fed and ECB Paths More Hawkishly Than Indosuez's Baseline

Money markets price about 1.5 Federal Reserve rate hikes and two European Central Bank increases over the next 12 months, a path more hawkish than Indosuez Wealth Management’s baseline outlook. The firm expects economic growth to remain stable as inflation gradually returns to normal. It sees those conditions as limiting the central banks’ room for further rate increases. An Indosuez strategist and a portfolio manager said it may take time to gather enough data showing subdued underlying inflation and economic growth to support that outlook. They expect bond markets to remain volatile in the meantime.

Source: TokenPost