Global inflation remained at an elevated 5.0% yoy in April (unchanged from March), although inflation in advanced economies edged lower to 2.6% yoy. • While overall progress in lowering inflation has slowed, some central banks have seen enough to start cutting rates, given policy is clearly restrictive. This month the European Central Bank and Bank of Canada cut rates, the first of the major advanced economy (AE) central banks to do so. Japan, in contrast, is moving to gradually tighten policy. We expect further major AE rate reductions, including by the US Fed and Bank of England, later this year and into next. The ... (full story)