There’s a black hole where central banks’ theory of inflation should be

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Why This Matters

Central banks' traditional understanding of inflation and expectations is being challenged, as the relationship between the two appears to be broken, leaving a gap in their theory.

Market Impact

Market impact analysis based on bearish sentiment with 73% confidence.

Sentiment
Bearish
AI Confidence
73%

Article Context

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Old assumptions about expectations and targets can no longer be relied upon

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Full article on Financial Times
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Original article published by Financial Times on December 5, 2025.
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