UBS On-Air: Paul Donovan Daily Audio 'Central banks keep tightening (involuntarily)'

European and US inflation numbers again surprised the markets by coming in lower than expected. The ending of the 2021–22 transitory inflation was very rapid (in the US, durable goods inflation went from record high to deflation within nine months). It may be that the ending of profit-led inflation is similarly fast. This does, of course, mean that real central bank interest rates are rising more rapidly—and the full effect of past monetary tightening has yet to be felt.