ECB’s Nagel: Tight labor market could result in persistent inflationary pressures

  • Rates have not peaked and eventual peak must be held for an extended period until inflation is broken

Once we’ve reached peak rates or near-peak rates, the debate will immediately shift to the question of how long to keep rates high. Central banks are talking tough but history shows they will cut when a recession is imminent.

This article was written by Adam Button at www.forexlive.com. Source