Global Watch September 2024
Inflation is in retreat in the main economies, with headline rates close to target, and central banks have begun to lower interest rates following the sharp tightening of monetary policy in 2022-2023. The ECB and Bank of England are among a number of central banks to have cut policy rates, while the Fed is certain to do so this month amid concerns about a slowdown in the US economy and a cooling in the labour market. Government bond yields and swap rates have fallen recently and are now well below policy rates as the market sees the latter being cut steadily over the next 12-15 months. The dollar has lost ground as Fed rate cut expectations have been building, with the euro and sterling setting new highs for the year against the US currency in late August.
Download the Global Watch in full here: