October or December? When is the ripe time?

The advanced economy (AE) world has now moved into an easing momentum.

- INDRANIL PAN

The latest to join the bandwagon is the US Federal Reserve with a 50-basis point (bp) cut. Fed's Jerome Powell, while not decisively ruling out another 50-bp cut at the November meeting, has, to an extent, downplayed the possibility of the same. At the time of writing, the CME Group's Fed watch tool now considers a 66 per cent chance of a 25-bp cut. But as recent evidence will have it, one cannot be sure, and another dose of lower-than-expected labour market reading could again swing it. The European Central Bank (ECB) had been moving gradually and cautiously on rate cuts in their own early stages of the monetary easing cycle. Now, with further evidence of subsiding inflation pressures, ECB President Christine Lagarde has also hinted at an October cut.