Going into the third quarter, the macro environment for financial markets is characterized by several central banks potentially nearing the peak in the tightening cycle. The lingering issue in most parts of the world is that inflation remains stubbornly elevated.
The notable exceptions from a tightening policy are the Bank of Japan and the People’s Bank of China where policy remains relatively loose.
However, for most Western central banks, the narrative is focusing on the data as it comes to hand and policy being adjusted accordingly to the new information.
