A surge in global borrowing costs, triggered by a sell-off in US Treasuries, means eurozone rate-setters have probably done enough to tame inflation, the governor of Spain’s central bank has said. Pablo Hernández de Cos told the Financial Times that the rout in the market for US government debt had triggered a rise in the cost of credit on the other side of the Atlantic.
The central bank governor stressed the need for the future government to build cross-party agreement around a plan to reduce the deficit, boost the country’s growth potential and lower unemployment, which has fallen sharply but remains the highest in the EU.
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