Russia and Brazil tied for first place - for now.

In the fight against inflation that the various central banks around the world are waging, Russia and Brazil are tied for first place, with a 225bp tightening since the beginning of the year. For now, as of Wednesday, Brazil's central bank is expected to raise its key interest rate by 75bp for the fourth time this year. With regard to tapering, this week the Fed made a particularly interesting clarification: while exceeding the 2% inflation target is a prerequisite for rate hikes, this is not the case for tapering, which will therefore focus almost exclusively on employment. A pre-announcement at Jackson Hole in late August remains our central scenario, with an effective start in April 2022. CIB Research is going on vacation and will resume publication of the Market Weekly News on 27 August. Until then, we wish you a great summer !