All other things being equal, in which one of the following economic scenarios is a central bank most likely to increase its main policy interest rate to achieve its macroeconomic and financial stability objectives?
A sustained appreciation of the trade-weighted exchange rate coinciding with a contraction in the manufacturing Purchasing Managers' Index (PMI).
An increase in the household savings ratio alongside a contraction in the broad money supply (M4M4M4) and falling asset prices.
A persistent depreciation of the domestic currency accompanied by a positive output gap and rising unit labour costs.
A widening of corporate bond credit spreads accompanied by a decline in consumer confidence and a negative output gap.
