With geopolitical tensions in the Middle East driving a new wave of uncertainty, investors are watching central bank decisions and accompanying statements very closely. How are policymakers responding, and what does this mean for fixed income positioning?

In this episode of The View Beyond, Bernadette Anderko is joined by Dario Messi, Julius Baer’s Head of Fixed Income Research, to discuss the week’s mammoth round of central bank meetings. The conversation explores how recent geopolitical developments are shaping inflation expectations, and the challenges that these pose for central banks. Dario shares his perspective on why a hawkish tone from policy makers is justified but may not necessarily translate into actual policy tightening. He also offers his insights for fixed income investors navigating the current environment.

(00:00) - Introduction
(01:13) - Takeaways from the Fed’s decision
(02:42) - Swiss National Bank and European Central Bank
(03:57) - Has the rate-cut narrative been derailed?
(06:40) - Will sounding hawkish translate into being hawkish?
(08:06) - Implications for bond markets and yield curves
(09:33) - Fixed income scenarios
(11:05) - Closing remarks and legal disclaimer

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