Inflation and Central Banks

This afternoon, the US consumer price index for November is expected to rise by 6.8% year-on-year, a level not seen since 1982. The week will then be dominated by central banker statements (Fed, ECB, BoE, BoJ ). As far as the Fed is concerned, we see an acceleration of tapering as an almost foregone conclusion, given the diverse profile of the members who have shown themselves to be in favour of it in recent weeks. The Fed could raise rates as early as Q2. As for the ECB, the end of the PEPP at the end of March is likely to be announced.