Three major central banks have announced rate cuts for their respective economies.
The European Central Bank (ECB) announced it was cutting rates by a quarter percentage point today, lowering its benchmark from 3.25% to 3%.
“The disinflation process is well on track,” said the ECB in a statement. “Staff see headline inflation averaging 2.4% in 2024, 2.1% in 2025, 1.9% in 2026 and 2.1% in 2027 when the expanded EU Emissions Trading System becomes operational. For inflation excluding energy and food, staff project an average of 2.9% in 2024, 2.3% in 2025 and 1.9% in both 2026 and 2027.”
Earlier today, the Swiss National Bank (SNB) cut its interest rate by 50 basis points, from 1.0% to 0.5%, marking its lowest since November 2022. SNB Chairman announced the cut by declaring, “With our easing of monetary policy today we are countering the lower inflationary pressure. We will continue to monitor the situation closely and will adjust our monetary policy if necessary to ensure inflation remains within the range consistent with price stability over the medium term.”
Across the Atlantic, the Bank of Canada cut its main policy rate by 50 basis points on Wednesday, to 3.25%
“Going forward, we will be evaluating the need for further reductions in the policy rate one decision at a time,” said the Bank of Canada in a statement. “Our decisions will be guided by incoming information and our assessment of the implications for the inflation outlook. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.”
The Federal Reserve will announce its latest rate policy decision on Dec. 18.
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