Currencies of central banks fighting inflation in credible manner likely to benefit in long-term

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Currencies of central banks fighting inflation in credible manner likely to benefit in long-term
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Central banks are in the spotlight. Economists at Commerzbank analyze how their fight against inflation could impact the exchange rates. End of rate h

Central banks are in the spotlight. Economists at Commerzbank analyze how their fight against inflation could impact the exchangeThe market has accepted that the rate hike cycle will come to an end for now, despite the fact that inflation rates are still well above target levels in some cases.

Only if the central banks have to react to a change in the current status quo will it become foreseeable which central bank is pursuing a properly restrictive course and which one is also keeping an eye on other factors apart from price stability – usually to the detriment of its own currency. The currencies of those central banks that are continuing the fight against inflation in a particularly credible manner are likely to benefit on a long-term basis too.

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