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Rates In Focus. Western central banks are resorting to interest rate cuts for the first time in the post-COVID era, triggering investor optimism for the next large move up in crypto prices. What else happened this week in markets?
On Wednesday morning, the Bank of Canada (BOC) announced a reduction in its overnight interest rate target, a move immediately followed by identical policy actions from Europe, with both the European Central Bank and the Danish Nationalbank unveiling their own similar sized rate reductions on Thursday.
Although inflation continues to run slightly above policy makers’ long-term (and admittedly arbitrary derived) 2% target in Canada and Europe, central bankers cited increasing confidence that inflation will continue to ease and a better ability to project the future pathway of inflation in justifying their initial round of cuts.
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