If you were the central bank of the year, what you do?

  • You’ve been on a rate hike cycle, but have paused
  • Today you’ve seen inflation come in very soft (there’s a but in this … check out the trimmed mean, which is the most important inflation reading for the central bank … do market participants know this?)

So where to now?

  • More hikes?
  • Extended pause?
  • Or … (deep breath) … a rate cut? (GASP …)

Answer, thoughts, speculations in the comments please …