Businesses hope for early rate cuts as banking fears linger
Businesses are increasingly hoping for early policy rate cuts to counter the potential fallout from banking system strains. Compared with early March, more Global Risk Survey respondents now believe the Federal Reserve and ECB will reduce interest rates before the end of this year and far
fewer respondents think that the first rate cut is at least a year away.
What you will learn:
- However, businesses remain fearful about banking system risks. Almost 1-in-5 report that they are very concerned about recent strains. On average, businesses see more than a 1-in-3 chance of adverse banking system scenarios materialising.
- The survey was completed by 112 businesses from June 7-16.
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