Major central banks likely to make policy mistakes – Deutsche survey

FILE PHOTO: The Federal Reserve in Washington
FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, U.S., May 1, 2020. REUTERS/Kevin Lamarque

October 12, 2021

LONDON (Reuters) – The U.S. Federal Reserve and the European Central Bank are expected to keep policy settings too loose while the Bank of England is likely to err on the hawkish side, most respondents told a market sentiment survey in October from Deutsche Bank.

Nearly 60% of respondents also believe that oil prices will increase to $100 per barrel. Brent crude prices have topped $80 per barrel for the first time since the fourth quarter of 2018.

Most respondents also expect an equity market correction before year end, similar to findings from the previous survey in September.

(Reporting by Saikat Chatterjee, editing by Huw Jones)