That’s the good news. But it should not mask the fact that the adjustment process is still far from over. Simply put, it’s more of a marathon than a sprint. Tenacity and perseverance are called for, particularly in the second half of the course. Yet a glance at the sovereign debt markets would suggest that the finishing line has already been crossed.
But should there be any further sharp repricing in financial markets, we will need to monitor the consequences carefully. Implications for monetary policy So what does this mean for the sustained adjustment in the path of inflation, which is the key condition for bringing net asset purchases to a gradual end?