Clearly, the post-Covid inflation surge is over and a return to targets is in sight. Consequently, interest rates have peaked, and a staggered cycle of easing is now likely.  Importantly, this doesn’t presage a return to the unprecedented lows of the extraordinary period between the Global Financial Crisis and the Covid pandemic. Rather, we are likely to see a return to the monetary normality of the pre-2008 world. So, for example, let’s assume that the Fed steers US inflation back to 2 per cent.  Let’s further assume, that US productivity growth continues its historic trend around 2 per cent. This…

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