"Whatever It Takes"

Endless narratives have inundated social media since the beginning of the year. Nonetheless, the one that stands out and is consistent with the existing Central Bank policy action is “Higher For Longer”.

Yes, folks, it was an action-packed week where major Central Banks worldwide announced their policy decisions, and we also got crucial economic data.

While the Fed opted for a “hawkish pause”, the ECB hiked rates by 25 bps, PBoC announced “panic” cuts, and the BoJ maintained a status quo.

Until now, we saw synchronized monetary policy tightening in the West; however, the paths are now divergent as inflation remains a bigger problem in Europe compared to the US.

In the East, PBoC cut rates, albeit by only 10 bps for the first time since August last year, and the BoJ continued with its YCC policy, thus supplementing global liquidity.

The theme of monetary tightening in the West v/s monet…