Bond markets are now adjusting to the relatively new environment of quantitative tightening

Of the 19 voting members on the FOMC, 15 judged the risks to the inflation outlook to be tilted to the upside, compared to just three in September, with President Trump’s policies widely expected to boost inflation further in the coming years

Majority of central banks have opted for interest rate cuts in their pre-Christmas meetings

Easing inflationary pressures should also support household real incomes and, in turn, consumer spending in the coming year

Incoming data will be the determining factor for the magnitude of rate cuts from central banks next year

Expected dissolution of the German Government brings yet further political uncertainty

The overall moves are modest in comparison to the 'mini-budget' debacle in 2022

After last week's interest rate cut, ECB president Christine Lagarde said headline and core inflation were 'all heading in the same direction: downwards'

ECB expected to cut interest rates again this week as France faces significant budget deficit

BoE governor Andrew Bailey has pivoted from cautioning against cutting interest rates too fast or by too much to saying only weeks later the bank could be 'a bit more aggressive' in cutting interest rates