David Wilder talks to Group Chief Economist Neil Shearing about the latest on the central bank war on inflation. They discuss what signs of persistently high core numbers mean for expectations for how far and fast interest rates need to rise and the role that weaker activity and cooling housing markets will play in easing price pressures. Plus, our Europe team has slashed its forecasts for euro-zone growth next year. Chief Europe Economist Andrew Kenningham explains what's dragging on the economy and whether the ECB will change tack accordingly.
The latest data show that inflation remains a clear and present danger to advanced economies. Does that mean central banks will have to raise rates much higher than previously thought? And why is Europe's economic outlook looking so much worse than it did a few months ago?