Bouvet: Why interest rate markets really need to start caring about inflation

We’ve got 6% inflation in the States, in fact, prices are rising across the world yet interest rate markets seems to be shrugging it off. But we think they really should start taking more notice soon. ING’s senior rates strategist, Antoine Bouvet, explains that central banks are still taking the view that the spike in inflation is temporary and markets, in part, are taking their cue from that. But he also points out that the current state of play of low interest rates and high inflation is not sustainable and tells us what we can expect next.