If the phrase “self-fulfilling expectations” is anything to go by, taming inflation will continue to be tough. Businesses are doubtful of the central bank’s messaging on projected inflation. They expect it, and wage growth, to remain elevated. Consumers are growing cautious too. Many households are prioritising debt repayments in the face of high rates. Elsewhere, US job market is still strong but easing, while China’s economic recovery is losing steam.
