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Tuesday, October 18, 2022

Global Economics Intelligence Executive Summary

Things are tightening.  From McKinsey: 

Global Economics Intelligence executive summary, September 2022

October 11, 2022 | Article

Central banks sustain aggressive policy tightening; industrial activity picks up in emerging economies; financial-markets uncertainty works to strengthen the dollar.

Led by the US Federal Reserve, most central banks are now following a tightening course, increasing interest rates to fight inflation. With 75-basis-point hikes in September, the Fed and the European Central Bank (ECB) brought policy interest rates to ranges of 3–3.25% and 0.75–1.50%, respectively. Fed officials expect these rates to exceed 4% in 2023. For the ECB, the September hike was the largest in its history. ECB president Christine Lagarde and members of the ECB rate-setting council have signaled strongly that further hikes can be expected in the remaining two meetings of the year (Exhibit 1).  ... ' 

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