Markets eye easing timing

The tightening cycle in global economies is preparing to give way to interest rate cuts. Markets, which broke records during the period when tight policies were implemented, fear that an early easing will cause inflation to rise again. The loose monetary policies that were among the important factors determining the global economy in the last few years have ended, and then a rather aggressive tightening cycle has begun. It is time for the tightening to end and interest rate cuts to begin in the economic cycle. In 2023, despite inflation improving, global growth has followed a resilient course. Part of this resilience stems from the self-reinforcing dynamic between strong consumer spending and robust labor markets. In 2024, the dynamics are being shaped between strong demand, especially on the services side, inflation that is feared to rise again (reflation), and the expectation of interest rate cuts.