The ‘Pause’ & Its Conundrum

In our market outlook last month, titled ‘2023, From Up Over a Crow’s Nest’, we pointed out that 2023 is the year market participants anticipate a shift in stance from global major central banks. Eyes are primarily on the US Federal Reserve, who were expected to reflect on their current relentless rate hike spree and allow a breather/pause to assess the impact of the same on underlying growth and inflation dynamics. As we head into the new year, let’s assess how this trajectory is unfolding and review the various actions of the global central banks.