{"id":24070,"date":"2023-06-17T19:38:13","date_gmt":"2023-06-17T23:38:13","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/global-policy-rates-defying-market-expectations\/"},"modified":"2023-06-17T19:38:14","modified_gmt":"2023-06-17T23:38:14","slug":"global-policy-rates-defying-market-expectations","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=24070","title":{"rendered":"Global Policy Rates: Defying Market Expectations"},"content":{"rendered":"
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Major developed market central banks around the globe are almost unanimously indicating rate cuts won\u2019t happen until next year, and in some cases have indicated additional hikes are still to come. The stark contrast with market expectations that global monetary loosening would begin before year-end likely means that optimistic growth expectations also need to be called into question.<\/span><\/strong><\/p>\n

U.S. Federal Reserve dot plot<\/strong><\/p>\n

FOMC participants\u2019 projection of the Federal Funds Rate<\/em><\/p>\n

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\"FOMC <\/picture>
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Source: <\/strong>Clearnomics, Federal Reserve, Principal Asset Management. Data as of June 16, 2023.<\/p>\n

Recently, broad market consensus had converged around the idea that global monetary loosening would start before year-end. However, these expectations may have been presumptuous. Not only have major central banks indicated that rate cuts are not to be expected until next year, but policy rates may still have even further to rise.<\/p>\n