Global Central Banks Embrace Rate Cuts Amid Economic Turbulence
Central banks globally, including the European Central Bank, have initiated interest rate cuts to stimulate their economies. Half of the 10 major developed market central banks have started easing policies, with the U.S. Federal Reserve expected to follow suit soon. This trend aims to address low inflation and economic slowdown.
Interest rate cuts from major central banks are well underway, with the European Central Bank delivering its second quarter-point cut of the year on Thursday.
Half of the 10 big developed market central banks tracked by Reuters have now started easing policy, and the U.S. Federal Reserve is likely to join the club next week. Here's a breakdown of where major rate setters stand and what traders expect next.
The Swiss National Bank was the first among Western peers to lower borrowing costs in March, cutting rates again in June to 1.25%. Futures markets see another cut on Sept. 26 as certain. Meanwhile, Canada's economy has prompted the Bank of Canada to implement its third consecutive cut.
(With inputs from agencies.)
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