Oliver Mangan: The view now is that rates will have to remain high over the medium term

Expectations for policy easing during 2023 have largely evaporated everywhere, with eurozone rates expected to be about 2.75% in three years’ time

Federal Reserve chairman Jerome Powell 'will keep at it until we are confident the job is done'.

US Federal Reserve chair Jerome Powell is apparently a big admirer of a previous chair, Paul Volcker, who tightened monetary policy very aggressively in the 1980s, putting the US economy into recession to squeeze long-running inflationary pressures out of the system.

The penny has now dropped that Powell is equally determined to restore price stability. Last week, he once again committed to tightening monetary policy sufficiently to bring inflation back down to 2%, saying the Fed “will keep at it until we are confident the job is done,” a not so subtle reference to Volcker’s memoirs, titled Keeping At It.