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Central Banks: Busy doing nothing
The BSP won't cut rates this month, because inflation nicked up a tenth above the consensus forecast, to come in at 1.3% for November. We don't think they are done just yet, but this is an opportune time for them to take a pause from the easing they have been putting in place over the year. For the Fed, well, there is still technically room for them to ease further, but they had signalled a pause pretty clearly recently, so it would have taken a mild disaster for them to get back off the fence and start cutting again. As it is, we go into this week's meeting with the US data holding pretty firm. Payrolls last week, ... (full story)