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Weakening economy will not do central banks’ job for them

The cost of living squeeze will push net energy importers including the euro-zone and UK close to, or into, recession. While this will have some disinflationary effects in the medium-term, we doubt that it will bring inflation down on its own. So central banks will still raise interest rates significantly further.
Vicky Redwood Senior Economic Adviser
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Global Trade Monitor

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More from Vicky Redwood

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