Global Central Banks Expected to Cut Borrowing Costs

Central banks globally are anticipated to decrease borrowing costs as inflation eases from multi-decade highs. Many have already initiated rate cuts, with more expected to follow, including major institutions like the US Federal Reserve, European Central Bank, and Bank of England. The FT global inflation and interest rates tracker provides ongoing updates on consumer price inflation and central bank policy rates worldwide. This marks a significant shift from the synchronized increase in interest rates as a response to rising prices. While inflation has reduced from its peak in most nations, policymakers warn that reaching central banks' target will be challenging. The page also monitors measures closely watched for signs of future inflation and policy rate trends. It's noted that energy prices, a significant driver of recent inflation, have now retreated from their peaks following the energy crisis caused by Russia's invasion of Ukraine. In addition, the yields on 2-year government bond yields and asset prices, particularly house costs, are being closely tracked for market expectations and concerns.