Fitch expects widespread rate cuts to begin but not 'steep'

By Ovunc Kutlu

ISTANBUL (AA) - Central banks around the world are widely expected to begin lowering their interest rates this year but those will not be "steep," according to Fitch Ratings on Friday.

The rating agency said it expects no further interest rate increases from the US Federal Reserve, the European Central Bank (ECB) and the Bank of England (BoE).

The agency, however, said it anticipates those central banks to cut interest rates by 75 basis points each by the end of this year.

"Fitch Ratings has long expected that policy rates would not start to be cut until 2024," it said in a statement. "Rates at the end of this year will still remain far above pre-pandemic levels."

The agency noted that it expects only the Bank of Japan to raise interest rates "as underlying inflation finally begins to build" among 19 out of 20 economies in its Global Economic Outlook.