For months this year, economists puzzled over why growth and inflation hadn’t slowed more in response to interest-rate hikes. “It’s definitely a turning point for inflation," said Stefan Gerlach, a former deputy governor of Ireland’s central bank. “Investors may be surprised at how rapidly central banks cut interest rates next year, maybe by one-and-a-half percentage point." “Our idea was that inflation would fall back without an increase in interest rates." Regardless of the exact timing, there is a growing consensus that inflation is on the wane and lower interest rates will follow.

Source: Wall Street Journal November 16, 2023 10:24 UTC