Hundreds of billions of dollars have exchanged hands this year in bets on when the next interest rate rises will be in the US, UK and eurozone, as volumes have surged in these markets because of the growing threat of inflation.
Financial markets are betting that the UK will be the first to raise rates in June, followed by the European Central Bank in September and finally the US Federal Reserve in December.
Rising food and commodity prices have prompted markets to bring forward expectations of rate rises, sparking the jump in volumes as inflation has become one of the biggest concerns for businesses, consumers and investors.
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