, or even pause in November and raise rates in December.”
“We assume the first rate cut is to occur in June 2024, but we acknowledge that this could be delayed because of still uncomfortably strong service and core inflation and rampant earnings growth.” “If we can make our way to the end of the year with no further rate rises, many would see this as a success. Maybe 2024 can be the year for rate reductions.”It generally increases rates in order to cut inflation, with the thought-process being that if rates are higher, and people are paying more on borrowing costs, their spending reduces, slowing the rate of price increases as demand falls.
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