HSBC: The path back to low interest rates around the world may not be easy

HSBC economists wrote in the report that the global path back to low interest rates could be difficult to predict. Switzerland and Mexico were among the first major economies to start cutting interest rates last week after continuing to raise interest rates to curb rapid inflation. HSBC noted that the world’s largest central banks, including the US Federal Reserve, the European Central Bank and the Bank of England, have mostly stood still for the time being as they await further data to confirm that price rises have cooled. “With growth in many economies more resilient than feared, they seem to have time,” the economists said. The easing cycle may be as unusual as previous economic expansion and tightening cycles. ”