July 2024 - Monthly House Views

Central banks into the deep end

As inflation continues to fall on both shores of the Atlantic, the major central banks could begin scaling down the restrictive nature of their monetary policy. We now expect their next moves to be both gradual and synchronised, with the Federal Reserve, European Central Bank and Bank of England all cutting rates once each quarter until the end of 2025.

With the economic background expected to remain favourable, what does this mean for investors and how does it impact our asset allocation?