Interest Rates

For some weeks now, my forecast calling for higher interest rates has been at odds with the prevailing view that rates will head lower in the months ahead.

My work has consistently indicated that rates at the short end could ultimately surge upward, producing a yield curve shock that would have the potential to take us into a situation not seen since the 80's.

Until this morning, all street chatter from top to bottom, offered me no encouragement to assume that my views regarding the prospect of higher rates were shared in the financial community.

Today, the ECB is reported to have hiked rates by 25 basis points to 3.5 percent. Is it a crack in the dike? Will the pundits come around to my point of view?