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Thoughts on the latest inflation data and its impact on central bank stance
The latest CPI numbers came in hotter than expected, definitely putting more pressure on central banks to maintain their hawkish tone, which is making me reconsider my long bias on certain growth assets and perhaps look more closely at defensive sectors.
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Seems like the market was already pricing in some of that hawkishness. Are you factoring in potential lag effects on inflation, or is this purely a reaction to the immediate data?