Historic jump in borrowing costs takes place in the world's largest economy. Rising prices of food, fuel and other products have driven the US Federal Reserve to hike its benchmark interest rate by a three-quarters of a percentage point. That's the sharpest increase in interest rates since 1994. Other central banks are also swinging into action to tame rising prices. The Bank of England raised its lending rate by 25 basis points to 1.25% and the European Central Bank says it intends to raise rates multiple times this year.

We spoke to Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics. He joined us from London.

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