European Central Bank

25 basis points from July

Rate of 8.1% exceeded expectations

Investors pulled $7bn

Declining macro outlook

Remains low in Switzerland

Reducing gilts

Cautious note

Robert Holzmann

With CPI soaring to four-decade highs, G10 central banks have been struggling to regain their inflation-busting credibility that is being ridiculed by persistently higher data, and which has forced them to throw “transitory” out the window.