Markets Heed Central Bank Pushback Against Aggressive Rate Cuts.

Traders in major markets are adjusting their expectations for aggressive interest-rate cuts this year, in response to warnings from central banks. The UK's surprise acceleration in inflation has contributed to this shift, with the market now pricing in fewer rate cuts from the Bank of England. Central bankers are exercising caution due to factors such as employment resilience, concerns about sticky price growth, and the scars from recent inflation spikes. While the rate direction still appears to be set, central banks are emphasizing the need for careful consideration before implementing rate cuts. [Extracted from the article]