2019 Global Interest Rate Cuts

2019 Global Interest Rate Cuts

Oct 15,2019

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Central banks have delivered 32 interest-rate cuts globally this year as a worsening U.S.-China trade war drags down global economic growth. Swap markets suggest we’re not even at the halfway mark for cuts yet.

Policy makers have reduced rates by a cumulative 13.85%, according to data from the Bank of International Settlements that track 38 central banks. Argentina was excluded from the calculation due to how it manages money supply.

Traders are expecting much more. Over the next 12 months, interest-rate swap markets have priced in around 58 more rate cuts, assuming central banks maintain their current trajectories in easing. Those cuts could total another 16% in global reductions.

News Credit : www.bloomberg.com/news

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