Spare a thought for the Fed. The hope that inflation had peaked in March was brutally dashed last week as headline inflation printed a new high, of 8.6%. A 50bp rate hike this month is now all but certain, with many forecasters looking for 75bp. We could also spare a thought for the BoE. The Old Lady told markets last time in convened that it expects inflation to rise above 10% by Q4, that the economy could well fall into recession, but that it will continue hiking anyway. Or maybe, we should spare a thought for the ECB. Last week, Ms. Lagarde informed investors that the central bank intends to raise rates by 50bp, at least, between now and September, followed by a "sustained and gradual" rate hikes. Yields and spreads rose on the day, likely more than the ECB would have expected, let alone liked, and the euro weakened. The central bank we shouldn't spare a thought for, however, is the BOJ, apparently.
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