Are interest rates on an upward curve?

Matthew Lynn

Interest-rate increases are fast resembling London buses. You don't see any for ages, and then they ...

Interest-rate increases are fast resembling London buses. You don't see any for ages, and then they all come at once. In the last month, borrowing costs have been rising around the world. And the European Central Bank has done its bit to fight inflation, boosting the refinancing rate by 25 basis points to 2.75% earlier this month. More increases are surely on the way. Yet this is one bus the ECB should be refusing to jump aboard. No convincing case has been made for higher euro-area interest rates. Nobody who heard ECB President Jean-Claude Trichet explaining the bank's decision could ha...