Central bankers pledge to ‘stay the course’ on high interest rates

Investors have been put on notice that central bankers on both sides of the Atlantic will “stay the course” on interest rate increases to cool down their economies and tame high inflation.

European Central Bank president Christine Lagarde warned that further big rate rises lay ahead in comments later echoed by a top official at the US Federal Reserve.

“We shall stay the course until . . . we can return inflation to 2 per cent…