Central banks to unveil further 'aggressive' interest rate hikes

Many economists predict the British and eurozone economy will contract next year, although parts of the eurozone such as Ireland will likely escape recession.  

The consultancy also believes that all the major central banks will keep their eyes focused for a while to come "on tightening policy and cooling price pressures" which will lead to "further aggressive hikes in interest rates in the US, eurozone, and UK over the coming months". 

The European, British, and US central banks will unveil further "aggressive" hikes in interest rates in the coming months, as they step up their fight to get a grip on inflation, a leading economics consultancy has predicted

Capital Economics predicts that the US central bank will sanction a further increase of three quarters of a point in its key rates next month and only stop when rates reach as much as 4.75%.