The rate-cutting cycle is no longer isolated. It’s coordinated. From Zurich to Manila, central banks are flipping the switch. The global economy is slowing, inflation is cooling, and policymakers are moving in sync. The easing wave is not speculative. It’s active. And it’s gaining speed.
Start with the European Central Bank. Eight cuts since mid-2024. The deposit rate now sits near 2 percent. President Lagarde says the inflation target is within reach, but markets are already pricing in another cut before year-end. The eurozone is not overheating. It’s stalling. The ECB is trying to keep the engine running.
Synchronized global slowdown getting started…https://t.co/iwyXF5aUf1
— Fibonacci Investing⚡️ (@FibonacciInves1) June 20, 2025
It's a misconception that you can print growth. If your deficit doesn't grow as fast as your printing, you can't. And every government will protect their currency to prevent this. https://t.co/mXscRSoE8l
— Fibonacci Investing⚡️ (@FibonacciInves1) June 20, 2025
From Asia to Europe, central banks are cutting rates to boost growth. The Fed is on pause but clearly leaning dovish. Global easing is gaining momentum — this isn't the time to go bearish. 📉❌ #markets #Fed #macro #interestrates #bullish
— optionGeek (@StockShark16) June 20, 2025
Sweden’s Riksbank just dropped its key rate to 2 percent. That’s 200 basis points of easing since last May. Price pressures are weak. Growth is weaker. The central bank says more cuts are possible. Investors are betting on it.
Switzerland went to zero. The Swiss National Bank cut its benchmark rate to flat in June. Inflation is falling. The franc is strong. The SNB is not ruling out negative rates if needed. That’s not a bluff. It’s a signal.
India’s Reserve Bank slashed its repo rate by 50 basis points. That was bigger than expected. They also cut the cash reserve ratio by 100 basis points. The move frees up billions in liquidity. The goal is to revive consumption and push GDP growth toward 7 percent. The central bank says the focus is on small and mid-sized firms. That’s where the jobs are. That’s where the credit is going.
The Philippines joined in. The Bangko Sentral ng Pilipinas cut its overnight rate to 5.25 percent. Inflation is cooling. Growth is lagging. The property sector is still recovering from the pandemic. Lower rates are expected to lift residential demand and unlock stalled commercial projects.
Canada paused at 2.75 percent but left the door open. The Bank of Canada has already cut 225 basis points in nine months. One more cut is priced in by December. Tariffs and trade friction are weighing on exports. The central bank is watching closely.
The Bank of England held at 4.25 percent. But three of nine members voted for a cut. Unemployment is rising. Wage growth is slowing. Inflation is still above target, but the pressure is shifting. Markets expect two cuts by year-end. The BoE is not rushing, but it’s not resisting either.
The Federal Reserve is on pause. Rates are steady. But Chair Powell says cuts are still likely in 2025. The market sees two 25 basis point cuts before December. Inflation has cooled. The Fed is watching tariffs and trade. Powell says the path is data-dependent. But the tone is dovish.
This is not a coincidence. It’s a pattern. Central banks are not waiting for recession. They’re trying to prevent one. The easing is not aggressive. It’s measured. But it’s global. And it’s real.
Sources:
https://www.sunstar.com.ph/cebu/bsp-rate-cut-seen-to-lift-property-sector
https://funds-europe.com/dovish-boe-hold-keeps-markets-calm/