This week the Bank of England and the US Federal Reserve joined the European Central Bank to each complete a 0.75% interest rate hike. In the UK, governor Andrew Bailey was a bit more conciliatory towards markets and said inflation is now expected to peak at 11% this year as he suggested that the hikes already in place may be enough to bring inflation below the 2% target in two years. In contrast, US Federal Reserve chair Jerome Powell indicated that US interest rates will rise further than markets currently expect as US employment remains robust and inflation continues to rise.
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