Central Banks Near End of Rate-Hike Cycle: Kiplinger Economic Forecasts
Some Latin American countries are even cutting interest rates, and more central banks could follow in 2024.
To help you understand what is going on in the global economy and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Further interest rate hikes are likely in most advanced economies this year. But most major central banks are near the end of their rate-hike cycles.
The European Central Bank is leaning toward another quarter-point increase in September, but it’s possible that slowing economic activity in the eurozone might prompt the ECB to pause at its next meeting. The Bank of England will likely raise rates again in September, after raising them in August. The Bank of Canada looks set to repeat its quarter-point hike in July at its next meeting in September unless core inflation slows soon. Central banks in advanced economies will likely not start reducing interest rates until well into 2024.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Most Latin American countries will start to cut interest rates this year. In fact, some already are. Having been among the first central banks in the world to raise interest rates in 2021, Brazil and Chile have started to cut interest rates, and will likely continue to do so in coming months. Ditto for Peru and Colombia. Mexico’s central bank will likely be the last in the region to embark on rate cuts, as core inflation remains stubbornly high there and the labor market stays tight.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
- Kiplinger Inflation Outlook: Headline Inflation to Rise More Than Actual Price Trends This Fall
- Fed Resumes Interest Rate Hikes: What the Experts Are Saying
- EU Split On Fiscal Policy After Over-Borrowing in Pandemic: Kiplinger Economic Forecasts
- July CPI Report: What the Experts Are Saying About Inflation
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Rodrigo Sermeño covers the financial services, housing, small business, and cryptocurrency industries for The Kiplinger Letter. Before joining Kiplinger in 2014, he worked for several think tanks and non-profit organizations in Washington, D.C., including the New America Foundation, the Streit Council, and the Arca Foundation. Rodrigo graduated from George Mason University with a bachelor's degree in international affairs. He also holds a master's in public policy from George Mason University's Schar School of Policy and Government.
-
Don't Leave Your Heirs an IRA Tax Bomb
Your traditional IRA has served you well, but when your heirs inherit it, watch out. Consider some of these strategies to minimize their tax burdens.
By Kelsey M. Simasko, Esq. Published
-
Five Ways to Maximize Your End-of-Year Philanthropy
To do the most good, pick the right charity, be smart about how you donate and consider giving something just as valuable as money: your time.
By Emily Glassman Published
-
Don't Sleep on Japan's Economic Transformation
The Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
By Rodrigo Sermeño Published
-
Start-ups Trying to (Profitably) Solve the World’s Hardest Problems
The Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
By John Miley Published
-
Will lower mortgage rates bring relief to the housing market?
The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
By Rodrigo Sermeño Published
-
The Big Questions for AR’s Future
The Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
By John Miley Published
-
China's Economy Faces Darkening Outlook
The Letter What the slowdown in China means for U.S. businesses.
By Rodrigo Sermeño Published
-
Should We Worry About the Slowing U.S. Economy
The Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
By David Payne Published
-
Kiplinger Special: How Businesses Should Budget for 2025
Kiplinger Forecasts From fuel to AI software subscriptions, here's what you can expect to pay next year.
By John Miley Published
-
Intel Braces for an Even Tougher Road Ahead
The Kiplinger Letter Amid a long, costly turnaround, Intel resets expectations again. Its new woes raise questions about U.S. industrial policy and global chip competition.
By John Miley Published