Fed and ECB seen cutting rates by middle of next year
The new higher-for-longer stage of global monetary policy may last only until the early months of 2024 as central banks begin moving toward cutting borrowing costs.
A remarkably stable “higher-for-longer” plateau in advanced economies that Federal Reserve chief Jerome Powell signaled in August will last no more than three quarters, according to the forecasts.
European Central Bank
Current deposit rate: 4%
Bloomberg Economics forecast for end of 2023: 4%
Bloomberg Economics forecast for end of 2024: 3.25%
Market pricing: No further hikes are priced with cuts starting from the middle of next year, with the key rate priced to finish 2024 around 3.35%
That’s the outlook foreseen by Bloomberg Economics
Bloomberg 8 oktober 2023
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