Hopes that the fight against inflation might soon ease have been dashed recently, forcing central banks in Europe to raise interest rate higher than we had expected.
Our chief economist in Europe, Jumana Saleheen, explains why the European Central Bank and Bank of England will need to keep interest rates at their peaks for some time to finally bring inflation back to acceptable levels.
She also explains why we don’t anticipate interest rate cuts until well into 2024 in either the euro area or UK.
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