11th August 2022
Columbia Threadneedle: When will central banks stop hiking interest rates?
The Bank of England delivered a 0.5% rise in the Bank Rate last week. This came after an even bigger move by the US and a similar hike by the European Central Bank. We explore the reasons behind the hikes and ask what will it take for us to see an end to the rises?
Although inflation is at a similar level in Europe and the US in headline terms, the composition is quite different. In the UK and euro area, energy prices are the chief culprit with gas prices leading the way. In the US, domestic pressures predominate. Wages there are rising strongly – much faster than in Europe – as are rents.
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