Inflation is proving to be alot more stickier than most anticipated especially in Europe. The Fed has raised their rates yesterday for the 11th consecutive time however they did maintain their hawkish tone to avoid the market getting complacent. however in all likelihood this would be the terminal rate.
The ECB has followed suit and raised rates by another 25 BPS making it the highest levels in 27 years. Inflation in the Eurozone is still much higher than the US with countries like Germany going into recession. BoE is currently under pressure from administrators to increasing further rates in their aim to avoid further economic pressure on the already battered economy. However UK inflation is still among the highest in the developed economies and swift action would be needed to control their inflation which is a lot more difficult to solve as UK is mainly a service economy.
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