Jerome Powell, Andrew Bailey, Christine Lagarde and Kazuo Ueda meet up in Portugal to discuss the economic outlook. The hawkish fireside chat revealed the central bankers are not looking to cut the rates anytime soon. Instead they welcomed the thought that the market may not be tight enough and further tightening may be needed to control the market.
The central bankers also do not want the market to price in the expectations of the cuts this year and cited they do not expect the markets to reach the 2% inflation targets till the next year at the earliest.
Looks like high rates for long is the new normal.
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