Central Banks
Rate Cliff Awaits Global Economy After Higher-for-Longer Plateau
- Quarterly outlook on what to expect from monetary policy
- Fed and ECB seen cutting rates by middle of next year
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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.
That’s the outlook foreseen by Bloomberg Economics, whose aggregate gauge of world interest rates is seen beginning a swift descent in the first quarter. In advanced economies, that shift will take only slightly longer to transpire before they too synchronize downwards.