Inflation Shows Signs of Easing, But Central Banks Cautious About Declaring Victory
• Central banks have made progress on bringing down high inflation, but more work remains to be done • Global economic data shows inflation may have peaked, but policymakers are still concerned about declaring victory too soon • Interest rate markets are pricing in rate cuts from the Fed and ECB in 2024, earlier than central banks anticipate • The BIS warns that credit risks from higher interest rates have yet to fully materialize • The popularity of buy-now-pay-later services benefited from low rates; their viability in a higher rate environment is uncertain