Global rate-cut standoff looms in '23 policy finale
Central bankers meet against a
backdrop of how the global inflation cycle is turning
From Washington to Frankfurt
to London and beyond, central bankers are approaching their final decisions of
the year against a backdrop of unease at how the global inflation cycle is
turning.
Policymakers from fully half of the Group of
10 jurisdictions of most-traded currencies are scheduled to meet in the coming
days, and interest rates for 60% of the world economy will be set in a
whirlwind 60-hour window.
Most notable will be the US Federal Reserve on
Wednesday, followed on Thursday by central banks including those of the
eurozone and the UK.
With the exception of Norway-which may
conceivably raise borrowing costs- most monetary officials are confronting
financial market pressures to explain why they seem unhurried about pivoting to
monetary easing.
Most central banks in Latin America
have begun cutting rates.Brazil and Peru may reduce rates in the coming week.
In India,RBI last week decided not
to increase repo rates for the Fifith time in a row.
That’s a view that could clash with the
mantra the Fed and its peers expounded little more than three months ago,of
higher for longer.
In Latin America,which led the push upwards
with rate hikes,most central banks are already on the way down,and Brazil and Peru may both cut in the coming week
