The Second Wave Problem: Why Central Banks Fear a 1970s Rerun More Than a Recession
If you locked in hopes that borrowing costs had peaked, this is your signal to reassess. Inflation is resurging around the world, and central banks are responding by raising interest rates again—meaning the 'higher for longer' era just got extended, with direct consequences for your mortgage, your savings, and your monthly budget.
Bottom Line
The return of global inflation isn't just an economic data point—it's a stress test of whether central banks learned the 1970s lesson. History says they'll keep rates high and hike further rather than risk a second, harder-to-kill inflation wave, which means households should plan for expensive borrowing and stubborn prices to persist well beyond what most forecasts assumed. This is a trend reversal, not noise.
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