g strength to the risk-off mood could be the hawkish central bank comments and the fears of aggravated tension between the West and China.
A notable jump in the inflation numbers at the key global economies joined the hawkish comments from the top-tier central bank officials renewed fears of higher rates and recession. Adding strength to theIn the last few days, the UK, Eurozone and the US have all been flashing upbeat signals for inflation while the central bank officials from the Bank of England , European Central Bank and the Federal Reserve are all favoring higher rates for longer.
Previously, St. Louis Federal Reserve President James Bullard, Richmond Fed President Thomas Barkin and Atlanta Fed President Raphael W. Bostic were the Fed speakers who rekindled the “higher for longer” scenario for rates and favored theWith this in mind, the market players place higher bets on the central bank’s 0.25% rate hike in May remain high, as well as reduce the probability of witnessing a rate cut in 2023.
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