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Raising interest rates with zero inflation remains a hard sell

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CROSSING THE LINE: Inflation expectations surveys and expectations embedded in markets see headline inflation well above target over the medium term.

London

AMERICANS and Britons bracing themselves for their first interest-rate rises in almost a decade are puzzled: Why are rates about to go up when there's no inflation?

Both the US Federal Reserve and Bank of England (BOE) are proclaiming that they are on the cusp of raising