Reported 8 months ago
Following the Super Central Bank Week that ended on June 16, 2024, Amundi's Chief Economist and Head of Investment Research, Monica Defend, presented the latest global monetary policy trends at a global investment forum. She emphasized that although US inflation remains high, it has significantly cooled down as the job market slows. It is predicted that the US will cut interest rates twice this year in September and December by 0.25 percentage points each, with a further 6 cuts expected next year. Taiwan is expected to have a one-time rate hike in the first quarter and maintain rates in September and December, with a rate cut cycle set to start in the first quarter of the following year, reducing rates by 0.5 percentage points quarterly and a total of 2 percentage points throughout the year. Monica Defend noted that the US inflation trend is declining, along with economic and consumption slowdowns, positioning a rate cut on the horizon. The US economy is forecasted to grow by around 2% this year, with an end-of-year inflation rate of 2.7%, expecting rate cuts in September and December by 0.25 percentage points each, and 6 rate cuts of 0.25 percentage points each in the 8 FOMC meetings next year.
Source: YAHOO