The shift by central banks to smaller rate hikes is not a signal that monetary tightening is about an end. Central banks have continued to emphasise that the battle to bring inflation back under control and restore price stability is far from won. They have been guiding that further hikes are on the cards and rates will need to go higher than previously anticipated. They have also moved to quell expectations of rate cuts before year-end, indicating that policy will need to be kept tight for a prolonged period of time to return inflation to target.