Image caption,And the Financial Times reports that there was a worldwide sell-off of stocks and bonds on Wednesday amid expectations that interest rates will stay higher for longer than previously thought. The paper says markets had been "pricing in rate cuts as soon as the spring", but that Christine Lagarde, president of the European Central Bank, has signalled that they will not fall as soon as many had hoped. The sell-off also followed new data showing that UK inflation had risen for the first time in 10 months. Ms Lagarde is quoted saying that, "short of another major shock, we have reached a peak" in interest rates, but that "we have to stay restrictive for as long as necessary".

Source: The Times January 18, 2024 01:03 UTC