Fri Oct 18 02:43:45 UTC 2024: ## Global Central Banks Continue Easing Monetary Policy, Sparking Opportunities for Investors
**Zurich, Switzerland** – The European Central Bank (ECB) is poised to lower interest rates for the third time this year, bringing its policy rate to 3.25%, as inflation in the Eurozone continues to ease. This move, which will mark the first back-to-back rate cut in 13 years, reflects a shift in focus from tackling inflation to supporting economic growth.
The ECB’s move comes as central banks around the world, including the Federal Reserve, the Bank of England, and Asian central banks, push ahead with their easing cycles. This trend is expected to continue, eroding returns on cash.
**”We believe policymakers could speed up the pace of interest rate cuts in the coming months amid easing price pressures and a stagnating economy,”** stated UBS CIO.
The analysts predict further rate cuts in the Eurozone, totaling 125 basis points by June 2025. The Federal Reserve is also expected to cut rates by 150 basis points by the end of next year, despite recent strong economic data in the US.
In the UK, the Bank of England is expected to make a second interest rate cut in November as inflation continues to moderate.
**”Investors should avoid holding excess cash, money-market holdings, and expiring fixed-term deposits,”** advised UBS CIO. The firm recommends alternative strategies to sustain portfolio income, including bond ladders, medium-duration investment grade bonds, diversified fixed income strategies, and equity income strategies.
**”The trend of easing monetary policy presents opportunities for investors to reposition their portfolios away from cash and into assets that can generate income and capital appreciation,”** said UBS CIO.
The analysts expect these trends to continue in the coming months, creating a favorable environment for investors seeking to capitalize on opportunities in the global markets.
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