2025-12-26 04:27:59

Inflation pressures are finally cooling down, at least that's what the latest core inflation figures suggest. Yet here's the catch—the central bank isn't exactly in a hurry to ease up on rate hikes.

The disconnect is real. When core inflation eases, you'd expect policymakers to pump the brakes on tightening. But that's not necessarily happening. The reason? They're watching everything. Data aside, geopolitical tensions, currency volatility, and wage dynamics all factor into their next move.

For those tracking macro trends and their impact on risk assets, this is the sweet spot to pay attention. Persistent rate hike expectations keep real yields elevated, which typically pressures alternative assets like crypto. But when the market starts pricing in eventual cuts, we could see a different momentum.

The bottom line: Don't read a single inflation number as the full story. Central banks are playing 4D chess here, balancing short-term data against longer-term stability concerns. Keep an eye on forward guidance and employment reports—those tend to move the needle more than you'd think.

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ApeDegen

· 7h ago

NGL, the central bank's moves are really top-notch. Inflation has decreased, but they stubbornly refuse to cut interest rates. Our crypto world’s days are going to continue being tough. --- Wait, are they really playing 4D chess? It sounds like they’re just stalling. Anyway, we all get caught in the crossfire. --- Real yields are still suppressed, which is like a meat grinder for us holding coins. When will we see expectations of rate cuts? --- And it all depends on employment data? Forget it, these macroeconomic data are played with in all sorts of ways. In the end, it’s still us retail investors who lose out. --- Geopolitics, exchange rate fluctuations, wage growth... Forget it, I’ll just wait and see how the crypto prices react. --- So, inflation has been a false alarm. The central bank just doesn’t want to loosen its grip. Now betting on the timing of rate cuts is even more exciting than betting on the market trend.

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LayoffMiner

· 7h ago

The central bank's move is really brilliant. Even though inflation data has improved, they are still raising interest rates, playing a real 4D chess... Wait, isn't this just putting shackles on crypto? High interest rates = skyrocketing real yields = no one is optimistic about our assets. The key is that they don't listen to the data at all. When geopolitics, exchange rates, wages, and other factors get mixed up, inflation numbers become worthless. Just wait for the forward guidance to shift, that will be the real signal to change the market trend.

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NestedFox

· 7h ago

The central bank's approach is basically pretending not to notice. Even if the data looks good, they are not in a hurry to cut interest rates, playing psychological games with us here. As long as the expectation of rate hikes doesn't disappear in a day, our assets will continue to be drained by actual yields, damn it. 4D chess? It's just a way of not admitting mistakes, with a bunch of excuses covering up the chaotic decision-making. Looking at employment reports is much more reliable than looking at inflation data—real, tangible stuff. What really leaves me speechless is that even when the data is easing, they still pretend nothing has happened. Crypto still has to remain under pressure.

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GrayscaleArbitrageur

· 7h ago

The central bank's move is really just pretending to sleep. Even though inflation has decreased, they refuse to cut interest rates. Isn't this just deliberately blocking us? Bad news prices have already risen, waiting for good news to crash the market—it's an art of counter-operation. It's better to watch the show yourself. Anyway, with such a high short rate, who dares to make a move?

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OldLeekNewSickle

· 7h ago

The central bank is playing psychological warfare; the data looks good but interest rate cuts are still far off. This wave is really just a way to lull retail investors into complacency.

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