Global Interest Rates Begin to Shift as Inflation Concerns Ease”

After a period of raising interest rates to tackle rising prices, central banks worldwide are now adjusting their approach.

The European Central Bank recently made its first interest rate cut in five years, following similar moves by other countries like Canada, Sweden, and Switzerland.

While the UK and US are not expected to cut rates immediately, many analysts anticipate action later in the summer or early autumn.

This shift reflects growing confidence that inflation is being brought under control. However, central banks must balance the need to lower rates to stimulate economic activity with the risk of reigniting inflation if rates are reduced too quickly.

The path to lower rates is likely to be gradual and cautious, with different regions facing varying economic conditions.

While Europe may return to near-zero rates due to slower growth and demographic factors, the US is expected to maintain higher rates due to factors like budget deficits.

Credit : BBC

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