<ul><li>Swift normalisation of interest rates is an essential first phase</li><li>Must forcefully tackle persistently high inflation</li><li>Inflation will remain high for some time; markets expect peak in Q1 next year</li><li>Sees several upside risks to inflation</li></ul><p style=““ class=“text-align-justify“>This ties with the more aggressive comments from ECB policymakers since Jackson Hole over the weekend. As things stand, a 75 bps rate hike next week appears to be the most likely scenario as they are also doing their best to tee that up.</p>

This article was written by Justin Low at www.forexlive.com.