More Central Banks Cutting Rates Than Hiking, According to Deutsche Bank Analysis

According to Yahoo News, for the first time since January 2021, there are more central banks cutting rates than those hiking them, as per a report released by Deutsche Bank research strategist Jim Reid. The trend began last month, with 10 central banks cutting rates, outnumbering those that hiked rates in the same time period. Reid's analysis covered 81 central banks worldwide. This month, five central banks, including those in Brazil and Peru, have cut rates so far. Major central banks like the US Federal Reserve and the European Central Bank are currently keeping rates steady, but there are expectations that they may start to hike rates in the coming months. Swiss bank UBS predicted last week that the Fed would slash rates as the US economy enters a recession around the second or third quarter of next year. However, Reid noted that unless the US experiences a recession, it will be difficult to see a significant global easing cycle. This is because inflation is still around target levels across major economies. The Fed has raised interest rates 11 times since March 2022 to combat soaring inflation, which rose 3.2% in October from a year ago, still above the Fed's 2% inflation target.