The global monetary policy cycle has turned back to hiking, following two years of (nearly) synchronised rate cuts.
In this episode of Macro Bytes, Chief Economist Paul Diggle is joined by Jon Butcher, Felix Feather and Sree Kochugovindan from Aberdeen's Global Macro Research team to discuss the shift back towards monetary tightening.
A week or two on from major decisions from the US Federal Reserve, Bank of England, European Central Bank and Bank of Japan, the team assesses whether policymakers are delivering a small number of "risk management" rate hikes, or embarking on a sustained tightening cycle.
The discussion examines the economic forces driving rate hikes, including high energy prices, currency developments, and rising estimates of neutral interest rates. The team also explores an increasingly important issue: the growing intersection between central banking and politics.
