Global central banks cut rates 28 times in Q3 2024 despite inflation risks.

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In Q3 2024, a noticeable trend has emerged: central banks worldwide have adopted a series of significant rate cuts. This pattern mirrors the drastic measures taken in Q2 2020 as the world grappled with the onset of the COVID-19 pandemic. Despite lingering inflation risks, many central banks, including the European Central Bank and the Bank of Canada, are opting to lower rates to stimulate economic growth.

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China, in a bold move to combat deflation, has slashed its reserve requirement ratio by 50 basis points, injecting approximately $142 billion into the economy for lending purposes.

While these measures aim to revitalize sluggish economies, the question remains: are we risking another wave of financial instability in our efforts to spur growth?

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Sources:

https://www.spglobal.com/ratings/en/research/articles/240626-economic-research-q3-2024-global-economic-update-the-policy-rate-descent-begins-13156013

https://abcnews.go.com/Business/wireStory/chinas-central-bank-cuts-bank-reserve-rates-pledges-113947811

https://www.msn.com/en-us/money/markets/rate-cuts-are-coming-from-the-european-central-bank-and-the-fed-experts-say-the-pace-will-be-mild/ar-AA1qr31m


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