Jackson Hole: Expectations have been dialled down a bit – Deutsche Bank

In view of analysts at Deutsche Bank, expectations from Jackson Hole have been dialled down a bit through August as to how hawkish central banks can afford to be at this juncture.

Key Quotes

“Yes the Fed may hike in December and yes the ECB may announce a further taper for 2018 in October but recent events (softer inflation, softer market sentiment and the strong Euro for the ECB) may mean that now might not be the time they choose to guide markets towards such an outcome. On balance we think the risks are more skewed towards higher yields post the symposium as an increasing amount of investors have relaxed over the likely central bank message.”