One up, one down, one no change

Monetary policy normalisation has been a big theme over the past few days and, insofar as this signals that inflation is also returning to more normal levels, this ought to have been welcomed by global investors. Most importantly the Fed has signalled a high likelihood that it will cut its policy rate at its next scheduled meeting in September and, in doing so, kick start an easing cycle. In our charts this week we focus on:

·         US interest rate expectations

·         UK inflation and the housing market

·         Market-based inflation expectations in Japan

·         The global policy rate consensus

·         Labour markets in the euro area

·         Geopolitical instability and supply chain pressures