Markets think it’s all over. After a lengthy and historic monetary tightening campaign to battle high inflation, major central banks are keeping high interest rates steady for now as traders price in rapid cuts ahead.
U.S. Federal Reserve chair Jerome Powell, said on Wednesday, “we’ve done enough.” The European Central Bank and the Bank of England on Thursday left rates on hold, but the BoE pushed back against rate cut bets, while Norway surprised with a rate hike.
Major rate setters have hiked borrowing costs by 4,015 basis points (bps) so far this cycle, with Japan the holdout dove.
Read More : Central Banks Maintain Steady Rates Amid Market Speculation of Swift Cuts