‘They Will Only Act To Avoid A Panic’: BofAML Has A Message For You

Given the current stance, the proverbial central bank put is out-of-the-money for now. In other words, central banks are unlikely to be deterred by the first e.g. 10% decline in equity prices, and are likely to be encouraged in tightening policy if risky assets remain resilient. That's from Deutsche Bank (out late last week) and it underscores the same point that pretty much everyone on the sell side is making. Namely that at this point, central banks are concerned first and foremost with a "sha