Citi predicts Fed, ECB, and BOE to cut rates in September to address inflation pressures

From Investing.com: 2024-06-15 05:02:03

Citi economists predict Fed, ECB, and BOE will all cut interest rates in September, citing resilient services sectors, persistent inflation, and geopolitical pressures. Global growth forecast remains at 2.3% for this year, down from 2.7% in 2021. Consumer spending shift towards goods expected to ease inflation pressures. ECB recently cut deposit rate by 25 basis points with inflation concerns lingering. Citi anticipates synchronized rate cuts through 2025 to address inflation pressures globally. Fed backtracking on planned rate cuts due to higher-than-expected inflation. ECB facing wage inflation and economic recovery challenges. BOE likely to cut rates in September alongside Fed and ECB due to inflation concerns.



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