The decision by Australia's central bank to implement a 25-basis-point hike today serves as a clear indicator of a trend likely to dominate the current year. We are witnessing a departure from the synchronized movements observed in recent years; instead, central banks in advanced economies are entering a phase characterized by significant policy divergence. This shift highlights a broader narrative involving growing dispersion within and among various economies. Along with fragmentation and volatility, this represents one of the three primary themes I anticipate unfolding throughout the year.

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