4. **Taylor Rule:**
   Proposed by economist John B. Taylor, the Taylor Rule is a formula that helps guide central banks in setting interest rates based on economic targets.

5. **Effects of Changes in Inflation, Neutral Rate, and Output Gap on Rate Cut Pace:**
   The current neutral interest rate suggests that two cuts of 25 basis points (bps) could suffice if inflation remains around 3%, nearing a monetary easing environment. However, if inflation decreases further or unemployment surges significantly, larger cuts may be necessary. The rising neutral interest rate will create higher nominal rate requirements, complicating the expectation for a symmetric rate cut approach like prior tightening strategies. After the current tightening cycle, rate cuts may not be as frequent and could depend heavily on market reactions.