Central bankers and markets are locked in a fresh game of interest-rates chicken
The European Central Bank has increased interest rates 10 times to reach 4.5pc
Central Bank Governor Gabriel Makhlouf rejected the possibility we could see rates cut within months. Photo: Steve Humphreys
Financial markets have swung rapidly to the conclusion that the interest rates hikes that hammered households and businesses over the last 16 months have peaked.
Inflation data last week sparked a swift repricing by professional investors, who now believe the European Central Bank (ECB) will begin reversing as soon as April some of the 10 rate hikes that have taken the benchmark for borrowing to 4.5pc in an attempt to cool inflation.
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