Conditional pre-commitment

Last week saw an unprecedented move by central banks in Europe towards stronger guidance about the outlook for monetary policy. This followed a similar story from the Fed, so there was the look and feel of a global communication campaign by central banks designed to calm market expectations of a rise in short term interest rates next year. Meanwhile, the strong US labour market data supported optimism about the outlook. This combination is supporting investor sentiment and leading to steeper yield curves.

Read the full report: Market Research

 

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