January 18, 2024
United States:
Fed’s Bostic Reiterates View Rate Cuts to Start in Third Quarter
Federal Reserve Bank of Atlanta President Raphael Bostic said he wants to see more evidence inflation is on track toward the central bank’s 2% target, repeating that he doesn’t expect policymakers to cut interest rates until the third quarter.
“My outlook right now is for our first cut to be sometime in the third quarter this year and we’ll just have to see how the data progress,” Bostic said in remarks to the Metro Atlanta Chamber’s board of directors on Thursday.
Europe:
ECB Officials Converge Around June to Start Cutting Rates
European Central Bank officials who until recently had been wary of even discussing interest-rate cuts now look increasingly open to commencing them in June.
Speaking this week in Davos, President Christine Lagarde and several of her colleagues dismissed investor bets on reductions before then. But they signaled the chance of a move around mid-year, when they’ll know more about inflation, wages and the stuttering economy, as well as the harm to supply chains by Yemen’s Houthi rebels.
Asia:
India Central Bank Not Discussing Rate Cuts Yet, Das Says
India’s central bank won’t consider interest rate cuts unless inflation settles firmly around the 4% target, with policymakers not even discussing the topic yet, Governor Shaktikanta Das said.
While price gains have moderated, “unless we see clear evidence that inflation is going to sustain at that level, it will be premature to talk about rate cuts,” Das told Bloomberg Television’s Haslinda Amin in an interview on the sidelines of the World Economic Forum in Davos Thursday. “The topic of rate cuts is not even under discussion,” he said.
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