With expectations for multiple interest rate cuts to start the year, why have the central banks been slow to move? On June 5, the Bank of Canada became the first Group of Seven central bank to reduce its policy rate, by a quarter-percentage point. However, the central banks have been proceeding cautiously with their monetary policy decisions. Let’s not forget that they faced significant criticism in 2021 for not acting swiftly to contain rising inflation, suggesting it was transient. Additionally, their caution has been influenced by the looming spectre of the 1970s. Interested in learning more? Click here for our full newsletter.