top10blockchaingames2022| June will be an important turning point in the wave of global central bank interest rate cuts
sourcetop10blockchaingames2022: Wall Street News
JPMorgan Chase expects the Bank of Canada and the European Central Bank to cut interest rates for the first time in June, and the Bank of Korea is expected to cut interest rates in the fourth quarter. Bank of England Governor Bailey previously stated that the possibility of a rate cut in June would not be ruled out.
Signs of slowing inflation have become increasingly obvious, creating conditions for a collective shift in monetary policy by central banks around the world in June.
JPMorgan Nora Szentivanyi's analyst team released a report this week saying that although inflation levels are still at a high level, developed economies have shown a significant slowdown.
Considering that the Swiss National Bank and the Swedish Central Bank have taken the lead in cutting interest rates, JPMorgan Chase expects the Bank of Canada and the European Central Bank to follow suit in June. JPMorgan wrote:
Canada's inflation rate fell to 2.5 percent in Apriltop10blockchaingames2022.7%, in line with our expectations. The three core indicators closely watched by the Bank of Canada are all within the target range, with an average of 2.75%, the lowest level since July 2021. Core CPI excluding food and energy also fell to 2.7%. We believe these data still support the Bank of Canada's first interest rate cut at its June 5 meeting.
After sending a strong signal to cut interest rates in June, the ECB also appears ready to act next month. A rate cut in June is almost certain, so new ECB staff forecasts may have a greater impact on signals from subsequent meetings. The core inflation rate is expected to increase slightly to 2.2% in 2025, but the inflation rate will remain at 2% in the second half of 2025.
European Central Bank President Christine Lagarde said on Tuesday that a rate cut in June is likely given that the rapid rise in consumer prices in the euro zone is now largely contained.
Inflation in the UK's services sector is higher, but JPMorgan Chase expects April CPI data to be lower than the Bank of England's forecast. Bank of England Governor Bailey previously stated that the possibility of a rate cut in June would not be ruled out, and the rate drop may be greater than market expectations.
In emerging markets, South Korea's economy is accelerating its recovery, expectations of slowing inflation and interest rate cuts may be postponed, and CPI expectations rise to 3.2%, significantly higher than the central bank's target, which may prompt the central bank to remain cautious. JPMorgan reiterated that it expects the Bank of Korea to cut interest rates by 25 basis points for the first time in the fourth quarter of 2024.
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