Central banks hold out despite weaker data
Markets are absorbing softer US data, the continued YCC determination of the BoJ, a hawkish ECB and a UK where inflation is slowing very slowly indeed. NAB’s Gavin Friend talks through the market response.
NAB Morning Call · NAB - The Morning Call
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Show Notes
Thursday 19th January 2022
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Bond yields pushed sharply lower overnight, despite weaker data that some could argue would support a pause in Fed rate hikes. But, as NAB’s Gavin Friend points out, central bank speakers are arguing that there will be no deviation from earlier guidance. That’s the view in the US, as well as in Europe, despite the Bloomberg report earlier in the week suggesting otherwise. In the UK inflation fell, but not by much and wage pressures continue. In Japan the BoJ is continuing to pursue its yield curve control policy and markets will lump it till they see the flavour of Kuroda’s replacement. Locally, Australian employment data is out today, with the focus on any glimmer of reduction in the tightness of the labour market.
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