Inflation risks trump growth risks for central banks

Danske Research Team Danske Bank A/S

We have expanded our Executive Briefing to also give a high level update on Nordic Economies and financial markets. We hope you find it useful.

Fear of inflation is increasingly supplemented by fear of recession as a market theme, not least in credit markets where spreads have widened very substantially.
However, there were also large parts of June where markets moved in the other direction, and uncertainty and volatility is high in many markets.
Both Sweden and Norway had 50bp rate hikes in June. Rate hikes look set to continue this year.

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Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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