The Term Structure of Interest Rates (TSIR) is showing a very negative slope reflecting expectations of a very deep "recession" in the future. A "logical" movement of the Monetary Authorities (Central Banks) could be... Central Banks will ignore the expectations pressures and will keep rates unchanged Central Banks will raise Short-Term Rates seeking to further control inflation, a measure that will have no impact on the actual shape of the interest rates. The Central Banks will aggressively raise Short-Term Rates, causing the TSIR to move in parallel upwards Central Banks will lower Short-Term rates as a stimulus to the Economy