New inflation surge places central banks in a bind
it has been proven time and again that hiking interest rates prematurely, or excessively, can cause markets to lose ground. When central banks turn hawkish, a finely balanced approach is what is needed. But often things do not turn out as predicted.
A renewed surge in inflation has caused jitters in markets as it coincides with central banks signalling an end to easy money policies and a commitment to hike interest rates next year.
Equity markets reacted
