Central Banks across the globe are set to navigate a year of interest rate cuts in 2024

In 2024, a global shift towards interest rate cuts is underway, marking a stark contrast to the aggressive tightening seen in the previous years. Central banks, led by the US Federal Reserve, are set to pivot towards easing monetary policy as inflation recedes. Bloomberg Economics predicts a decline of 128 basis points in global rates, with emerging economies taking the lead. While some central banks like Brazil and the Czech Republic have already initiated rate cuts, others, including the European Central Bank, are expected to follow suit. The nuanced approach reflects the challenge of balancing inflation and economic growth.

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Fed Pivot Will Dominate Year of Rate Cuts in Turn of Global Cycle

By Bloomberg News

The coming 12 months are shaping up as the year of the interest-rate cut.

After racing ahead with the most aggressive tightening campaign in decades during 2022 and 2023, central banks around the world are poised to begin easing monetary policy as inflation continues to retreat.

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