With consistently strong job growth, historically low unemployment and solid growth in consumer spending, that doesn’t sound like a recession most people would remember.
Interest rates are rising at a rapid pace, as central banks admit that inflation is no longer just a series of transient shocks, but there is a risk that it becomes more ingrained. For many, this feels like a new regime in monetary policy and financial markets.
A cost-of-living crisis, industrial unrest, fears over energy supply and the ongoing headache of Brexit – these are just some of the crunch points facing Boris Johnson’s successor.
Central banks want to restore public confidence and regain their credibility after describing inflation as “transitory” last year and waiting too long to react to the surge in prices induced by fiscal and monetary policy responses to the pandemic