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From: Ahmed Shawky
Direct: The world seems to be facing a significant wave of interest rate cuts this year, as a result of a strong monetary easing response to worries over slowing economic growth caused by many commercial and geopolitical factors .
Emerging markets have begun to lower rates as developed-country central banks hint at easing monetary policy because of fears of growth and slowing inflation.
The International Monetary Fund (IMF) has confirmed these concerns about economic growth after a fourth reduction in global GDP growth forecasts over the past nine months.
Deutsche Bank expects interest rate cuts worldwide, with a cautious approach from the ECB and the Federal Reserve.
Mubasher is monitoring interest rate cuts by central banks around the world in the last three months.
In July, several emerging countries reduced their interest rates.
Saw Turkey The most powerful rate reduction after the pressure exerted by President Recep Tayyip Erdogan and the dismissal of the former governor of the central bank, the central bank having decided to drastically reduce the rate of 4.25% to 19, 75%, well above estimates.
The Central Bank of Turkey said that recent data indicated a recovery in economic activity and that inflation expectations were improving, noting that a change in the new data is taking place. would accompany a change in the position of monetary policy.
In Russia The central bank has decided to reduce the benchmark interest rate by about 25 basis points, to 7.25%, according to forecasts.
The reduction results from the less than expected growth of economic activity in Russia since the beginning of the year and the decline in inflation.
The Russian power plant also pointed out that there were risks to economic growth related to restrictions of international trade and geopolitical factors.
For the first time since 2016, the central bank has cut South Korea Interest rate of 0.25% to 1.5%.
South Korea cut interest rates, as worries about the economic outlook led the central bank to reduce its growth forecast for the year to 2.2 percent from an earlier forecast of 2.5 percent.
For For IndonesiaThe central bank decided to cut interest rates by 25 basis points to 5.75%, for the first time in two years.
The rate cut came as economic growth slowed and the central bank hoped the reduction would help reduce the impact of the Sino-US trade war.
In South AfricaThe central bank lowered interest rates by 25 basis points to 6.5%.
Monetary policy officials in Central Africa agreed to cut interest rates because of the uncertainty surrounding the African country's economy, which declined 3.2 percent in the first quarter.
In order to support the economy, the central bank decided L & # 39; Australian Reduce the reference rate of the second meeting by 25 basis points to 1%, the lowest level ever recorded.
The Australian central bank said that a relaxation of monetary policy would boost operational growth and give greater confidence that inflation is consistent with the medium-term goal.
For For Ukraine, The central bank has reduced its benchmark interest rate for the second time this year by 50 basis points to 17%, higher than badysts' estimates.
The rate cut has arrived in the country that is suffering from the economic crisis and is waiting for cash badistance to be paid due to the slowdown in inflation.
While the central bank of Serbia and Paraguay lowered interest rates from 0.25% to 4.50% and 2.75%, respectively.
Last month, the Indian central bank reduced its benchmark interest rate for the third time this year by 25 basis points to 5.75%.
The bank decided to cut interest rates because of slower economic growth and rising unemployment, noting that the reduction would support efforts to boost aggregate demand and boost investment.
Chile's central bank lowered interest rates by 50 basis points to 2.50%, while Iceland lowered interest rates from 0.25% to 3, 75%.
In May, the central bank followed philippines A loose monetary policy aimed at reducing interest rates from about 25 basis points to 4.50%, the same decision taken by the central bank Malaysia Bring the interest rate to 3%.
The decision is made on the basis of forecasts that the rate of inflation would decline after the slowest economic growth in four years in the first quarter of this year.
Several developing economies have seen their interest rates fall in recent months in the context of the most favorable global monetary policy conditions: Angola, Azerbaijan, Costa Rica, El Salvador, Jamaica, Mozambique, Sri Lanka, Tajikistan, Dominican Republic and Zambia.
Upcoming facilitation decisions
The Federal Reserve's decision next week is the most watched by global markets, which are expected to drastically cut interest rates by 25 basis points, between 2% and 2.25%.
In recent comments, the Fed has been talking about lowering interest rates to curb the slowdown in inflation compared to the bank's 2% target, as well as fears of a slowdown in economic growth.
US Federal Reserve Chairman Alan Greenspan said the Fed should remove interest insurance without waiting for a disaster for the economy to act.
For the ECB, although it decided to keep the interest rate at its last meeting, it alluded to a reduction in rates and stimulus measures to counter the slowdown in inflation.
Fearing a slowdown in growth, the Indian central bank is expected to lower interest rates to 5.5 percent at the next meeting on Aug. 7, after a three-year rate cut this year.
According to Goldman Sachs forecasts, Brazil is also expected to cut rates for the first time in more than a year at next week's monetary policy meeting.
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