- Ballestas Group
U.K. Inflation Reaches 40-year High
This week the minutes of the Fed's monetary policy meeting in July were published, where it was pointed out that it might be appropriate to slow down its trajectory of rate increases, but projecting that they would maintain increases in the next meetings until inflation was controlled and The latter declines substantially, reaffirming its commitment to the 2% inflation target. A monetary tightening that would be maintained raises expectations of interest rate hikes. The market internalizes with a 55 probability a hike of 75 bps in September.