A major central bank cut rates while inflation is still climbing. The first one to blink.
A G7 central bank cut its benchmark rate a quarter point this morning, ahead of every forecast, with inflation still running above target. It's the first major bank to ease into rising prices instead of waiting them out. That's a real break from the last two years of policy.
Cutting into inflation is a bet that a slowing economy is now the bigger threat. That repricing ripples outward fast: the currency, government borrowing costs, and every other central bank now under pressure to explain why they're holding. When one blinks, the others get a harder question to answer.
Watch the currency over the next 48 hours and whether a second bank follows this week. If two move, it's a turn, not a one-off. If the currency slides hard, expect the cut to get walked back in the messaging by Friday.