Next year should be better but no less confusing. NAB’s Rodrigo Catril explores the themes for 2022 on the last Morning Call of the year.

Oil and equites have fallen sharply on Omicron concerns. NAB’s Ray Attrill says the US is only a ocule of weeks behind UK infection rates. Europe meanwhile, struggles with rising gas prices on capped gas supplies from Russia. Not the best lead-in to Christmas.

Whilst Europe is closing up for Omicron, NAB’s Tapas Strickland says inflation remains a bigger concern in the US, with the FOMC’s Governor Waller saying a March rate hike a live issue.

The Bank of England has lifted interest rates, despite everything! NAB’s Gavin Friend says its been clear they were intent on lifted rates for months, holding out to ensure jobs didn’t fall off a cliff post-furlough.

The Fed plans to clear the decks, says NAB’s David de Garis, for a faster schedule of rate hikes. The path for the Bank of England is a little less certain. The latest from the FOMC on today’s Morning Call podcast.

It’s all about dots and jabs today. We need more jabs faster to keep the global recovery on track. Meanwhile, how many dot points is the Fed expecting next year to contain inflation? NAB’s Rodrigo Catril suggests whatever the FOMC decides, markets will expect more.

We shouldn’t expect too much from financial markets over the next couple of days, says NAB’s Tapas Strickland, ahead of central bank meetings later in the week. But Omicron caution has taken the shine off things for now.

Friday’s high inflation number I the US makes a faster taper from the FOMC almost certain, says NAB’s Ray Attrill, whilst the UK’s concerns over Omicron raises questions about the market’s glass half-full optimism.

When it comes to Omicron we’re not out of the woods yet, says NAB’s Ray Attrill, so that’s added to caution in the markets, along with concerns about what US CPI might show.