Deutsche Bank Warns of Global Re-Inflation as Central Banks Face Divergent Rate Paths

As reported by Jin10, multiple central banks will make their final interest rate decisions of the year this week and next. Deutsche Bank warns that global re-inflation is returning, with George Saravelos, the bank’s global head of FX research, noting that many non-U.S. economies are now seeing rising rate expectations. While the U.S. 10-year Treasury yield remains flat, countries like South Korea, Sweden, and Japan have seen yield increases of 30 to 50 basis points. Japan’s central bank is expected to raise its key rate in December, with analyst Gautam Samarth calling its decision potentially more significant than the Fed’s. The Fed cut rates by 25 basis points to 3.5%-3.75% but signaled a more difficult path for further cuts.