Global "rate cut wave" difficult start This week, multiple central banks decide on the follow-up process

Zhitong Finance learned that this week, several decisions made by policymakers in developed economies will further allow the market to gauge their attitudes towards joining the global interest rate cut cycle with caution. Following the Federal Reserve's lowering of its forecast for interest rate cuts earlier this week, central bank policymakers in countries such as the UK and Australia may indicate that they still lack sufficient confidence in countering inflation to begin reducing their borrowing costs.

Such outcomes will once again prove that June, originally seen as the prelude to a series of global interest rate cuts, may increasingly become a month of indecision as in the past. Despite Canada's first interest rate cut by the Group of Seven (G7) on June 5th, and the European Central Bank's reduction of borrowing costs the following day while raising inflation expectations, it shows limited enthusiasm for further easing policies.

For the Bank of England's meeting on Thursday, the upcoming general election and lingering inflation pressures make the case for delaying any rate cuts until at least August even more compelling. The Reserve Banks of Australia and Norway, also meeting this week, are expected to refrain from immediate rate cuts, and half of the surveyed analysts believe that the Swiss National Bank, after boldly cutting rates in March, may temporarily avoid a second rate cut. Decisions in other countries may reflect different stages of the global monetary cycle, with Brazil and Paraguay expected to keep borrowing costs unchanged, while Chile is expected to slow down its rate cuts.

Signs of major economies easing monetary policy are becoming increasingly apparent. In addition to the aforementioned central banks, central banks of developed economies such as the Czech Republic, Hungary, Switzerland, and Sweden, as well as emerging economies such as Brazil, Chile, Colombia, and Mexico, have already announced interest rate cuts, with some central banks implementing multiple cuts.

Economists at Bloomberg said, "Major central banks seem likely to keep interest rates unchanged, whereas just a few weeks ago, they seemed more likely to cut rates. The Bank of England is almost certain to keep policy unchanged before the UK general election in June. This is a similar decision for the Swiss National Bank."

The inflation level is one of the most significant indicators affecting central bank decisions. As inflation rates in most developed economies in Europe and America remain above target and expectations are unstable, central banks may continue to maintain high interest rates in the short term to push inflation down. The curtain has already been raised on interest rate cuts by major central banks globally; analysts believe that it is difficult for the world to return to the low interest rate era before