Financial Times
The response in the euro to this week’s latest crank higher in interest rates tells us a good deal about how investors are looking at the world. The inflation-focused European Central Bank on Thursday lifted deposit rates by a quarter of a point to 4 per cent — the highest point in the common currency’s existence. “If you go back before the ECB’s formation and look at previous tightening episodes from the German Bundesbank, they’ve now delivered as much tightening in the space of 15 months as the Bundesbank did from the start of our data in 1948,” wrote Jim Reid and colleagues at the bank.
