Think Ahead The Case For Rate Cuts

ING argues that central banks in major developed economies are likely to transition toward rate cuts in the next 12-18 months as inflation fears fade. This outlook challenges current market expectations, which predominantly position for higher rates.

Key Takeaways

• 1.Central banks in the US, Europe, and UK may begin cutting rates in 12-18 months, contradicting current market expectations for higher rates.
• 2.The US Federal Reserve's recent hawkish stance is likely to give way to a lengthy pause as the inflation backdrop improves.

Table of Contents

• The case for rate cuts
• Markets aren't looking for rates to come down before 2028
• The rebound in US jobs isn't quite as strong as you think
• THINK Ahead in developed markets
• THINK Ahead in Central and Eastern Europe
• Key events in developed markets next week
• Key events in Central and Eastern Europe next week

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