Skip to main content

Tightening cycles to be short lived as headwinds grow

Further interest rate hikes are likely across the region in the near term, and we have raised some of our year-end forecasts to reflect growing concern among the region’s policymakers about inflation. However, with economic growth likely to slow over the coming months and inflation set to fall back sharply by the end of the year, tightening cycles are likely to be short lived. We think most central banks will be finished hiking rates by early 2023. In contrast, the consensus and financial markets are expecting tightening cycles to continue well into next year.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access