Sir Lagarde's comments aimed at mitigating the rise in European rates find little echo in the markets. The PEPP is unsuitable to smooth out any episode of volatility and in the United States, Jerome Powell defends a policy of zero rates until 2023.
The central banks of Brazil, Turkey and Russia raised their rates last week. The Bank of Norway has advanced the timetable for the planned increases. Financial markets are also urging the Bank of Canada and the Reserve Bank of Australia to act as monetary policies seem to be out of step with the economic recovery.
On the other hand, the credibility of the Fed's speech is questioned by bond markets.
Market performance remains very homogeneous, despite increased competition from sovereign debt diverting flows of insurance accounts such as credit A.