The bond markets v central banks

FOR MUCH of the past two years, central bankers have found themselves playing second fiddle to governments. With interest rates in the rich world near or below zero even before the pandemic, surges in public spending were needed to see economies through lockdowns. Now central bankers are firmly in the limelight. During the past month, as inflation has soared, investors have rapidly brought forward their expectations for the date at which interest rates will rise, testing policymakers’ promises to keep rates low.