July 19, 2024
United States:
Economists Trim US Inflation Forecasts, Paving Way for Fed Cut
Economists trimmed their US inflation projections through the first half of 2025 and see a slightly higher unemployment rate, a combination they expect will encourage the Federal Reserve to start lowering interest rates.
Forecasters in the latest Bloomberg monthly survey see the annual core personal consumption expenditures price index excluding food and energy — the Fed’s favored measure of underlying inflation — ending the year at 2.6%. That compares with the prior month’s projection of 2.7%.
Europe:
ECB’s Villeroy Says Market Views on Rate Path Are Reasonable
Market bets that point to two additional European Central Bank interest-rate cuts in 2024 sound “reasonable,” according to Governing Council member Francois Villeroy de Galhau.
“I won’t make a prediction because it will depend on data,” he told BFM Business television on Friday. “We are looking more at the forecast for 2025 than the fluctuations in 2024 as there will be highs and lows from one month to the next. That said, we are free in our decisions, but today the market expectations on the rate path seem to me to be rather reasonable.”
Asia:
RBI Needs to ‘Unambiguously’ Focus on Inflation, Governor Says
India’s central bank needs to “unambiguously” focus on inflation as economic growth remains strong, Governor Shaktikanta Das said, adding to expectations interest rates will be kept on hold for longer.
The Reserve Bank of India monitors the growth numbers very carefully and even with current interest rates, economic activity has been very robust, Das said at an event hosted by the Financial Express newspaper in Mumbai on Friday. The central bank is “optimistic” of its 7.2% growth projection for the current financial year that started in April.
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