Central Banks Will Probably Cut Only Half as Much as They Hiked
- Higher-for-longer rate settings reshape market outlook
- Guggenheim favors corporate bonds, Standard likes German bunds
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Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
Major advanced economy central banks are likely to take back less than half of the interest-rate hikes they rammed through over the past two years — an outlook reshaped significantly by US outperformance.
After the Federal Reserve, European Central Bank and Bank of England jacked up their benchmarks by a collective 1,475 basis points, only 575 basis points of reductions are in store by the end of 2025, according to new Bloomberg Economics estimates.