Deutsche Bank warns markets may underprice future rate hikes
Henry Allen says investors could underprice the full extent of upcoming central-bank interest-rate rises, citing high energy prices pushing inflation higher than reflected in recent data.
Investors could underprice the full extent of central banks' interest-rate rises over the coming months, Deutsche Bank's Henry Allen said in a note. He said high energy prices will push up inflation and that this is not reflected in the latest inflation data. He added that major central banks could act more aggressively than markets are pricing.