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David Riley's avatar

Good post and agree that the Iran war will likely prove to be more of a negative growth than persistent inflation shock to the global economy. Unfortunately he ECB and BoE don't seem to agree and are preparing the ground for rate hikes into fragile economies, especially the UK that has no growth momentum at all.

Hybrid Economics's avatar

Thanks David. Completely agree. I think the BoE in particular is on the cusp of a terrible mistake, especially if market pricing is correct. We're planning on discussing that in coming posts...

moyeen islam's avatar

The BOE’s (over)reaction is a result of the mistakes in communication in 2022-23.