Australia’s bigger-than-expected hike in interest rates today put European markets under pressure as inflation worries return to the fore.
The 0.5% rise was also the Reserve Bank of Australia’s first back-to-back increase in 12 years and follows Monday’s surge in the US 10-year bond yield on fears over how high interest rates might go.
Figures from the British Retail Consortium fuelled concerns that cost pressures are causing consumers to rein in spending, with a 1.5% decline in like-for-like sales in May the third monthly decline in a row.
