The global contagion from the sub-prime crisis in the US has created a dilemma for central banks. On the one hand, the turmoil in the financial markets argues for lower interest rates. But on the other, there are a host of medium-term pressures that suggest that the risks to inflation are still on the upside, and that rates may have to rise further – at least outside the US.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.