UBS On-Air: Paul Donovan Daily Audio 'Following inflation lower'

UBS On-Air: Market Moves - A podcast by Client Strategy Office

Yesterday’s central bank decisions support the trend of following inflation lower. The Swiss rate cut reflected a desire to stabilize real rates, not stimulate the economy. Bank of England Governor Bailey linked future rate cuts to lower inflation; an August rate cut looks increasingly likely. Only the Federal Reserve seems to have forgotten that rising real rates are repressive.