Easing inflation sparks rate cuts across global central banks
Easing inflation sparks rate cuts across global central banks
11 Oct 2024
The Federal Reserve, European Central Bank and Bank of England all announced rate cuts over the third quarter of 2024. The BoE were the first to cut rates, reducing the base rate by 25 bps to 5.0% in August, amidst a reduction in inflationary pressures.
Meanwhile, oil prices declined rapidly with the weakest growth in demand since the pandemic, the main driver being sluggish growth of the Chinese economy.
Quarter in brief
- The Fed and ECB both cut rates just a month after the Bank of England lowered the Bank rate
- Equity market volatility picks up
- Consumer confidence falls as warning that a painful budget is required to fill an inherited ‘fiscal black hole’
- Sharp declines in oil prices are hinting at an economic slowdown in some major economies
- UK DB funding levels ended the quarter relatively close to where they started despite volatility