RBA Hikes Interest Rate to 4.60% as Inflation Risks Rise 
Middle East Oil Exports Recover as Tanker Costs Surge 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Euro Hits 17-Month Low as France Debt Fears Boost Dollar 
ECB May Stop Rate Hikes After December, Capital Economics Says 
RBI Rate Hike Bets Surge as Inflation Rises 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
OPEC+ Expected to Hold November Oil Output Quotas Steady 
Gold Prices Rise as Weak US Jobs Data Cuts Fed Hike Bets 
BlackRock’s Rick Rieder Favors Bonds Over Stocks as Treasury Yields Surge 
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Inflation expectations are soaring across the developed world. After the United Kingdom opted out of the European Union in the June referendum, exchange rate declined sharply and gave rise to the inflation expectations; consumer inflation expectation has jumped to 2.75 percent in the UK for the year 2017. While there has been no Brexit in the Eurozone or in the United States, rising commodity prices are giving rise to the concerns and the effects of easy money seem to be kicking in.
In the United States, 5-year 5-year (5y-5y) forward inflation expectations have reached to 1.97 percent in November. That is the highest level since August last year. Similarly, in Eurozone, European Central Bank’s (ECB) preferred gauge 5y-5y forward inflation expectations have reached more than 1.5 percent this month, which is the highest level in eight months.
Concerns have already started surfacing with regard to central bank’s stimulus measures. The market is preparing for a rate hike from the US Federal Reserve in December and lower stimulus from the ECB, when the current measures of bond buying expire in March next year.
