ING Monthly - the full report: The masks, and gloves, are coming off

As the world discovers it can largely live with Omicron, it’s not just the masks that are coming off. Central banks are starting to take off the gloves as the ‘grand rotation’ begins and it’s the big ones setting the tone. Remember that just last year, markets were predicting the first US interest rate rise in 2024.

Clearly, the Fed’s determination to start normalising monetary policy right now has surprised many. And it’s sending a clear message: The age of cheap money has come to an end. It’s casting off the mantra of ‘lower for longer’ and is determined to bring in a series of rate hikes and shrink its balance sheet. Inflation, not Covid, is the new kid on the block who needs to be shown who’s the boss.

In this edition of the ING Monthly, we look at all major economies, sectors and markets to tell you exactly what's going on in the world and why, and what we can expect in the months to come.