While the Fed and Bank of England held rates as expected, the accompanying forecasts and commentary from key policymakers have helped to align futures markets with central banks

Markets are now pricing in just 70 basis points of rate cuts by the end of 2024, down from the almost nearly 100 basis points, or 1%, in cuts that were priced in only a couple of weeks ago

After around two years of aggressive interest rate hikes from the main central banks, monetary policymakers are still on hold and currently deploying a “data-dependent” approach in setting monetary policy.

Other indicators such as employment, consumer spending, and exchequer tax revenues provided a more reliable picture of the economy last year

Sticky inflation and moribund GDP growth point to a malaise in the economy

The tax and spending plans of incumbent Joe Biden and his rival Donald Trump will come into focus in the coming months

While it was widely expected monetary policy would remain on pause, central bank watchers were parsing the press conferences for subtle signs central banks would move soon

ECB watchers will be paying close attention to survey measures of wage inflation and collective wage bargaining agreements