Central banks have so far pushed through on rate hikes with a backdrop of increasing inflation, above trend growth and record tight labour markets. With the war-driven peak in energy prices now well past us and the covid inventory cycle normalized, inflation is on the way down. Cracks are starting to show in the economic outlook, especially in Europe, and demand for labour is less frantic. Core inflation is still way above the target, but when heading in the right direction and with plenty of monetary tightening already delivered, central banks can afford to be patient. Should inflation resurface, they could easily ... (full story)