It appears that the global cycle of interest rate cuts has reached its peak. However, it seems that this cycle may be starting to turn towards its end. This does not mean that monetary easing policies will be reversed, but their direction is likely to change. The question now is: when — or if — will financial markets begin to feel the effects of that shift? Interestingly, the world has seen more interest rate cuts in the past two years than during the global financial crisis of 2007-2009, according to Bank of America data. While these statistics relate to the number of times rather than the size of the cut itself, they reflect the magnitude of the historic rate hikes we witnessed in 2022 and 2023 in central banks' battle against inflation.
