According to TechFlow News on May 17, as reported by Jinshi, macro research firm TsLombard stated that amid oil price shocks, the extent of policy tightening by global central banks may be quite limited, and aggressive tightening cycles are unlikely. In the U.S., the Federal Reserve is less likely to implement policy tightening in the near term, and if it does, it almost certainly won’t happen until 2027. In Europe, energy shocks are already dragging on economic activity. The UK labor market has appeared unstable for some time, while hiring sentiment in Europe is also increasingly weakening. The European Central Bank and the Bank of England will tighten less than market expectations this year, a possibility currently underestimated.
