22nd February 2024
T. Rowe Price: Central bank rate-cut pricing is eye-catching but deceiving
Traveling to meet with clients around the globe in early 2024, many have asked me about my outlook for interest rate cuts from developed market central banks. The financial media has devoted much attention to the surprisingly large number of 2024 rate cuts reflected in interest rate derivative markets. Market sentiment shifted dramatically with the dovish pivot from developed market central banks that started with the Federal Reserve in late November 2023 and gained steam in the eurozone and the UK in December and January.

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