Head of U.S economics are expecting to see the first cut of interest rates in June. The prediction may see first a so-called soft recession who will trigger a central bank cutting of 25 basic point per quarter.
There are many speculations about the soft recession but we might see a strong one as many countries started to de-dollarize.
Deutsche Bank’s economist predicting the cut of interest rates in the first half on 2024 and a strong slash of rates to slow down the inflation. The bank expects an initial cut of 50 basis points in June 2014 followed by 125 basis point to the end of the year.
Raising interest rates in last year have increased 11 times, all in hope to slow down the inflation and stop the economy to collapse.
The fastest increase in interest rates from 1980 have occurred in last 16 months. The rates have gone from 0% to 5.5%.
Currently rates gone from 5.2% to 5.5% to be reduced on 3.4%-3.7percentage, to end of 2024.