The dominant global theme in June has been the increase in rhetoric from central banks – other than the US Federal Reserve – suggesting the day is nearing when emergency policy stimulus will need to be unwound. Global bond yields rose as a result, while the US dollar weakened. ECB President Mario Draghi suggested that deflationary forces have been replaced by reflationary ones. The Bank of England and the Bank of Canada also hinted at policy tightening. Monetary policy normalisation across the world is a healthy development, as recent economic data suggest “emergency” policy settings are clearly no longer needed. The Bank of International Settlements said policymakers should take advantage of the improving economic outlook and its surprisingly negligible effect on inflation to accelerate the unwinding of quantitative easing programs and record low interest rates.