Economists are at odds with markets over investors’ optimistic bets that the global economy is set for a soft landing and interest rates are close to their peak.
Markets have rallied on both sides of the Atlantic in recent weeks, as the UK followed the US and eurozone in showing headline inflation is declining at a sharper-than-expected pace.
“In all the major regions we have this sense of light at the end of the tunnel,” said Claus Vistesen, chief eurozone economist at consultancy Pantheon Macroeconomics.
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