Interest Rates – Expectations for the Fed’s Policy Rate Path

Interest Rates – Expectations for the Fed’s Policy Rate Path Morgan Stanley expects more Fed rate cuts in the first half of 2025 than markets currently price in, as the impact of tariffs will likely hit the U.S. economy, despite inflationary risks. Image: Morgan Stanley Research

G10 Policy Rates

G10 Policy Rates The majority of G10 central banks are either currently cutting rates or are expected to start soon, reflecting a broader global disinflationary trend and changing economic conditions. Image: Goldman Sachs Global Investment Research

Central Bank Policy Rate Changes

Central Bank Policy Rate Changes Goldman Sachs has revised its forecast regarding interest rate policies, suggesting significant declines in policy rates across most economies over the next 12 months, driven by easing inflation and slowing economic growth. Image: Goldman Sachs Global Investment Research

Global Policy Rate Hikes

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

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

Fed – Number of Policy Rate Adjustments

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

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

Major Central Bank Policy Rates

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

Global Monetary Policy Rates Will inflation cause central banks to tighten monetary policy quicker than expected? Image: Topdown Charts