Global Policy Rate Hikes In June 2024, for the first time since October 2020, no major central banks around the world raised interest rates, marking a significant shift in global monetary policies. Image: BofA Global Investment Strategy
Interest Rates – Central Bank Policy Rate Hikes vs. Cuts Emerging market central banks typically take the lead in initiating monetary tightening and easing cycles. In 2024, their approach has shifted away from aggressive easing. Image: BofA Global Investment Strategy
Interest Rates – Expectations for the Fed’s Policy Rate Path Nomura still expects 25 bp rate cuts in July and December 2024, as well as four additional 25 bp rate cuts in 2025. Image: Nomura
Central Banks Policy Rates Are global negative interest rates unlikely to be revisited soon, as many policymakers have concluded that they have not worked as intended? Image: Deutsche Bank
U.S. Implied Policy Rates – Federal Funds Futures Market expectations for Fed policy have swung dramatically over the past few months. Image: J.P. Morgan Asset Management
Fed – Number of Policy Rate Adjustments Throughout history, the Federal Reserve has made decisions that are not influenced by the election cycle, as the central bank’s actions are predominantly guided by economic indicators and its dual mandate. Image: BofA Global Research
Median Policy Rate Projections in the Fed’s Summary of Economic Projections The anticipation of rate cuts in 2024 and beyond is generally viewed as bullish for equity markets, as it signals a potential easing of monetary policy that can support economic growth and stock prices. Image: BofA Global Research
U.S. Dollar and Policy Rate: Fed Minus G10 Excluding U.S. Should investors turn bearish on the U.S. dollar? Image: Alpine Macro
Major Central Bank Policy Rates The peak in interest rates among major central banks is yet to come. Image: Wells Fargo Economics
Global Monetary Policy Rates Will inflation cause central banks to tighten monetary policy quicker than expected? Image: Topdown Charts