The outlook for official interest rates
Market sentiment towards central bank official interest rates has changed quite sharply in the first few weeks of 2023, and there is a definite feeling in the air that the rate of interest rate rises we saw in 2022 will ease, and perhaps that the rises may even soon come to an end. While there are definite reasons for the extreme pessimism of the latter months of 2022 to be lifting, we think it may be premature to declare that central bank tightening has run its course.