The European Central Bank is widely expected to raise interest rates, with the Iran war still pushing prices up. Eurozone inflation is at 3.3%, well above target, energy inflation is at 14.3%, while European bond yields are at multi-decade highs, CNBC reported.
Europe is not alone: The ongoing Middle East conflict — several US planes were damaged by Iranian missiles overnight — pushed oil above $100, and a senior central banker warned that Japan would have to raise rates to their highest level in 30 years at next week’s meeting. The US is also facing inflationary pressures and high debt loads, driving bond yields up: The gap between US and Chinese government borrowing costs is the largest ever.
