Don’t bank on a swift return to normal interest rates

The past few weeks have seen a dramatic change in the mood music coming out of the central banks on either side of the English Channel.

Mario Draghi and Mark Carney, heads of the ECB and Bank of England, have fallen in beside their US counterpart Janet Yellen to give the broadest of hints that interest rates are finally heading upwards again.

If markets have read the central bankers’ comments correctly, this is a significant shift. In the UK’s case, we have just celebrated, if that is the right word, 10 years since interest rates were last raised.

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