In the first period, stretching until the collapse of Silicon Valley Bank (SVB) in the United States, mounting signs of more persistent pressures on core inflation in the euro area – i.e. inflation in the Harmonised Index of Consumer Prices (HICP) excluding the food and energy components – had led investors to reassess their views on the likely future path of inflation and interest rates, and they were pricing in a higher-for-longer inflation and rate environment. Expectations regarding the level of the “terminal rate” (the peak…