Episode Details
Back to EpisodesHawks, hikes and holds as central banks face inflation
Description
This week on Bondcast, Imogen Bachra is joined by market specialists Stuart Sparks and Oriane Parmentier to discuss the latest developments across the major central banks and what they could mean for rates markets.
Recorded shortly after the ECB’s meeting, the conversation begins with the central bank’s latest 25bp rate hike and the implications of higher inflation and growth projections. The discussion then turns to the Bank of England ahead of next week’s meeting, including the potential for a change in voting patterns, guidance and the pace of quantitative tightening.
The US is also firmly in focus, with the Federal Reserve’s September meeting approaching. The team considers whether the Fed could deliver a rate hike, the implications of recent inflation data and the potential tension between monetary policy and political pressure for lower rates.
Finally, the conversation examines the US long end, including the latest treasury buyback operation and what its relatively modest size tells us about the authorities’ intentions.
Key takeaways:
- The ECB is becoming more hawkish in its outlook
- The Bank of England could acknowledge rising global inflation risks
- Quantitative Tightening could be the more interesting BoE decision
- The Fed is moving closer to a September rate hike
- The long end remains vulnerable to structural inflation and fiscal risks
Host: Imogen Bachra, Head of Economics and Markets Strategy
Guests: Oriane Parmentier, European Rates Strategist
Stuart Sparks, Head of US Rate Strategy
This episode was recorded on 10 September 2026.
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