Fitch Ratings, in its latest forecasts for the Federal Open Market Committee (FOMC) of the US Federal Reserve and the Governing Council of the European Central Bank, predicts that both the FED and the European Central Bank will cut interest rates three times, a total of 75 basis points (bp), by the end of the year. waiting for him to leave.
However, Fitch is looking for more evidence that the recent decline in inflation is permanent before both central banks begin the policy easing process. Fitch moved the date of the FED’s first interest rate cut to July from its previous expectation of June. Similarly, the date of the ECB’s first interest rate cut was postponed from April to June.
Fitch increased its 2024 global GDP growth forecast by 0.3 points to 2.4% in its March 2024 Global Economic Outlook Report (GEO).
This reflects a “sharp upward revision of the US growth forecast to 2.1% from 1.2% in the December 2023 GEO.” The revision for the US outweighs the marginal cut to China’s 2024 growth forecast from 4.6% to 4.5% and the revision to the Eurozone forecast from 0.7% to 0.6%.
*This is not investment advice.
