MAJOR advanced economy central banks are likely to take back less than half of the interest-rate hikes they rammed through over the past two years — an outlook reshaped significantly by US outperformance.
After the Federal Reserve, European Central Bank and Bank of England jacked up their benchmarks by a collective 1,475 basis points, only 575 basis points of reductions are in store by the end of 2025, according to new Bloomberg Economics estimates.
The latest outlook, coming after a series of disappointingly high inflation readings in the US along with better-than-anticipated economic activity, is revamping the investment landscape. It offers more time to lock in today’s relatively high yields, plus opportunities for relative-value bets as some central banks ease before others. – Bloomberg