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ECB Poised to Cut Rates Again in Warm-Up for the Fed
2024-09-08 09:00:08
Economy
Markets

ECB Poised to Cut Rates Again in Warm-Up for the Fed

The European Central Bank (ECB) is expected to cut interest rates once again in anticipation of cuts by the US Federal Reserve and the Bank of Canada. This coordinated easing is aimed at supporting economic growth.

Policymakers will be closely monitoring inflation data from Mexico, Brazil, and Argentina, as well as an IMF review of Ukraine's economy. The upcoming rate cuts are seen as a positive stimulus for industries such as real estate, renewable energy, and heavily indebted companies.

However, banks may face challenges due to narrower interest margins. Overall, the rate cuts are expected to be gradual and predictable, and the global economy is still projected to grow, albeit at a slower pace.

Related news on that topic:

Navigating Market Uncertainty Amid Expected Fed Rate Cuts

Amidst expectations for Fed rate cuts, caution is advised as a larger 50 basis point cut could negatively impact stocks despite market enthusiasm. The upcoming jobs report will be pivotal in determining the timing and extent of rate cuts, with a strong report challenging current rate hike forecasts. The labor market slowdown, moderating inflation, and Fed Chair Powell's signals point towards deeper rate cuts. Amidst this uncertainty, investors are advised to consider shifting from money-market funds to bonds. While inflation control is showing progress, challenges persist, with the US recession looming as a top risk according to Fed Chair Powell.

Analysis: August US Jobs Report Influences Market Expectations of ... Rate Cuts

The August US jobs report indicated slower job growth and a drop in unemployment, sparking expectations of a Fed rate cut. Analysts noted manufacturing weakness, increase in part-time roles, and decline in temporary help. The report's surprise raised the case for larger interest rate reductions. The market anticipates a significant cut, with debates on the extent. Fed Chair Powell aims for a 'soft landing' but acknowledges the need for action. Wall Street braces for potential shifts in response to the report, which is crucial in determining the timing and size of autumn rate adjustments. The labor market slowdown, coupled with economic indicators, suggests deeper rate cuts in the coming months.

The press radar on this topic:

EL PAÍS
8. September 2024 um 03:25

Winners and losers of the drop in the price of money

Economy
Finance
Environment
Real estate companies, renewables and more indebted stocks have already seen this week in their prices the expectations of rate cuts. Banks start as losers but analysts still see room for growth. September has finally arrived to continue or start the path of lowering interest rates so eagerly awaited by the Stock Exchanges, companies and indebted households, and not so much by traditional savers of letters and deposits. The markets expect the ECB to lower rates by a quarter of a point next Thu..
Yahoo Finance
8. September 2024 um 16:54

ECB Is Poised to Cut Rates Again in Warm-Up Act for the Fed

Economy
Finance
Politics
The ECB will likely cut rates again, ahead of expected Fed and Bank of Canada cuts, as major economies synchronize easing to support growth. Upcoming inflation data from Mexico, Brazil, and Argentina, as well as an IMF review of Ukraine's economy, will be closely watched by policymakers. Policymakers have new forecasts and are more comfortable changing rates at meetings like this one.
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