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Central banks have more work ahead
Over the last four weeks I have been travelling to US (East Coast); Canada (Toronto); Europe (including Paris and Frankfurt) and London visiting customers and officials. Just as we have seen the RBA step up its tightening agenda following the pause in April we have seen similar themes in other countries. The BOC paused and restarted and BOE has accelerated its cycle. Today we see that the BOE has surprised markets with a 50 basis point increase. The FOMC paused in June but expects to resume tightening twice more by year’s end. My take on the current challenges of central banks is that they have been responding to ... (full story)