English
The Fed or any major central bank will not cut rates in 2023
Credit Suisse believes that any expectation that the Federal Reserve or any major central bank will cut interest rates next year is misplaced, because inflation will remain above the targets set by banks.
The bank indicated in its forecast report for the coming year that financing conditions will remain tight, and the persistence of geopolitical and economic risks means that market volatility will continue.
He added: Markets will probably focus first on higher interest rates for a longer period, which in turn will lead to poor performance of equity markets.
At the same time, the Swiss bank stressed that inflation will reach a peak in most countries next year as a result of tight monetary policies, and will eventually decline during 2023.
Nevertheless, those expected levels of inflation in the coming year will be higher than the target set by central banks in advanced economies, including America, Britain and the eurozone.
