Semi-annual outlook video | Whatever it takes, in reverse
In Short
Central banks are on a mission to fight the inflation beast, whatever it takes… but quite in reverse: it is no longer about preventing a recession/deflation or preserving the EA stability, but re-anchoring inflation expectations and restoring credibility, notwithstanding the recession risk. The financial mood will remain gloomy this summer as economic data deteriorates while central banks walk their hawkish talk.
