Deutsche Bank warns markets may be underpricing the scale of the global tightening cycle amid rising commodity prices and hawkish inflation responses.
Deutsche Bank says markets may be underestimating the scale of the global tightening cycle. The bank points to rising commodity prices, financial conditions that remain accommodative, and a more hawkish reaction by central banks to inflation as contributing factors. It adds that inflation risks could keep pressure on central banks, though the source provides no further detail. The available reporting is limited, leaving many specifics unclear.