Investors may be underpricing how far rate hikes could go, Deutsche says

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Deutsche Bank cautions investors that the potential extent of interest rate hikes may be underestimated amid a global synchronized tightening cycle. Recent rate increases by major central banks like the Federal Reserve, ECB, and Bank of Japan highlight this trend.

Deutsche Bank warned in a note Monday that investors may be underestimating how far interest rates could rise, as the world enters a synchronized tightening cycle. Macro strategist Henry Allen highlighted that the Federal Reserve, European Central Bank and Bank of Japan have all hiked in the past two weeks, and while markets are pricing ...