ANZ: policy rates may be further away from sufficiently restrictive than markets r pricing

ANZ point to the acceleration in PMIs across the US and Europe, providing this graph:

ANZ go on:

• So far in 2023, US and European PMI prints are indicating economic resilience and rising, not falling, future economic optimism.

And conclude:

• Policy rates may be further away from “sufficiently restrictive” than markets are pricing.