Rate Cut Financial News

Bitcoin (BTC) continued its upward momentum, reaching around $67,900. The Federal Reserve’s preferred inflation measure, the Core PCE Price Index, increased by 0.2% month-over-month in April, aligning with expectations but slightly below the previous month’s 0.3% rise. This modest increase may ease some inflation concerns for the Fed, but consistent readings are necessary to support a potential rate cut by September.

The economic deities on Friday answered the prayers of those banking on lower rates.

The Canadian economy grew at a slower-than-expected pace in the first quarter, amid rising expectations that the Bank of Canada will cut interest rates.

Inflation ticked up to an annual 2.6% in Europe in May

Inflation has declined to the lowest point in three years, and the federal government has created the economic conditions that would allow the Bank of Canada to cut interest rates when it meets next week on June 5, says Deputy Prime Minister Chrystia Freeland.

Gold and silver prices today on 28-05-2024: Check latest rates in your city“Gold is trading slightly lower on profit-booking after yesterday’s sharp up-move, as some caution is seen among traders ahead of the inflation data from Germany/ Eurozone and U.S., which could influence the policy decision of the European Central Bank and U.S. Fed, respectively.

Inflation in the US saw a slower-than-expected rise in April, with the consumer price index (CPI) increasing by 3.4% year-over-year, according to the latest data. The core CPI, which strips out the volatile food and energy sectors, softened for the first time in six months.

Also Read: India's economy likely slowed to an annual 6.7% in January-March, its weakest pace in a year, finds report"Going forward, we expect investment growth momentum to sustain with extra fiscal space for infrastructure spending given a higher than expected dividend transfer by the RBI. As a result, we recently revised our growth forecasts for CY24 slightly higher by 10 bps to 6.7% YoY," Goldman Sachs analysts Santanu Sengupta, Arjun Varma and Andrew Tilton said in a note.India’s growth momentum remains strong and they expect the core inflation will bottom out in April-June 2024 and be around 4.0% - 4.5% in H2CY24.Meanwhile, the Monetary Policy Committee (MPC) members from the RBI have sounded cautious on sticky food inflation owing to supply side disruptions due to the ongoing hot weather conditions in many parts of India.

investors pared expectations of a U.S. interest rate cut after the Federal Reserve's latest meeting indicated that a delay in monetary policy easing is likely. FUNDAMENTALS

Wall Street sparked by a string of better-than-expected US data that added to worries the Federal Reserve will hold off on cutting interest rates this year. A weeks-long rally in equities has petered out in the past few days on profit-taking and as central bank officials pushed back against bets on an early reduction.

Gold prices rose on Friday as the dollar slipped, but were headed for their worst week in five and a half months as hopes of interest rate cuts by the U.S. central bank tamed. Spot gold rose 0.2% to $2,332.77 per ounce as of 1:54 p.m. ET (1754 GMT) as the U.S. dollar index slipped 0.4%, making gold relatively less expensive for other currency holders. [USD/] [US/]

Asian stocks fell on Friday, while the dollar advanced as strong U.S. economic data bolstered the prospect of interest rates staying higher for longer and the Federal Reserve taking its time in cutting rates, keeping investors away from risky assets. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% and was on course for a 1% weekly decline, snapping its four-week winning streak. Japan's Nikkei fell 1.45%.

With inflation cooling to a three-year low in April, some economists are now all but guaranteeing that the first interest rate cut of the Bank of Canada‘s tightening cycle will come in June.

Economists had forecast the Consumer Price Index to drop to 2.1% for the month, a sharp drop from 3.2% in March. On a monthly basis, CPI rose by 0.3% in April 2024, compared with a rise of 1.2% in April 2023, according to data from the Office for National Statistics. Falling gas and electricity prices caused the largest downward contributions to the monthly change in both CPIH and CPI annual rates, the ONS said. Meanwhile the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but still down over 12 months. BoE's Ben Broadbent: ...

In his final speech as deputy governor at a Bank of England event yesterday (20 May), he argued the large inflationary shocks brought by the pandemic and the war in Ukraine are now over, with economic data stabilising over the last year or so. Bank of England mirrors Federal Reserve and holds interest rates As such, he argued if data follow the current forecasts, the BoE is likely to begin cutting rates at some point over the summer. «Whatever the priors of its individual members, the MPC will continue to learn from the incoming data and, if things continue to evolve with its forec...

Also Read: Explained: Why are central banks accumulating gold in large quantities? In addition to the expectation of a rate cut by the US Fed, other major central banks are signaling their willingness to lower interest rates. Bank of England Governor Andrew Bailey hinted at possible rate cuts as soon as next month, while Sweden's central bank recently implemented its first interest rate cut in eight years. Emerging central banks are continuing their momentum in gold purchases, with China leading the way.

₹6,619 per barrel on the multi commodity exchange (MCX). The number of Americans filing new claims for unemployment benefits fell last week by 10,000 to a seasonally adjusted 222,000, the U.S. Labor Department said, pointing to both an underlying strength and a steadying of the labor market.

Gold prices dipped on Monday on profit-taking as investors looked forward to key inflation figures this week for clues on the U.S. interest rate cuts this year. Spot gold fell 0.7% to $2,342.95 per ounce by 1442 GMT. It had hit its highest level since April 22 on Friday.

Bitcoin (BTC/USD) recently crossed the $60,000 threshold, only to face new challenges from Federal Reserve sentiment. The cryptocurrency, currently trading around $60,800, experienced a modest drop of about 1.50% over the last day, keeping the bitcoin price prediction bearish.

US labor market fueled optimism about potential interest rate cuts this year, ahead of next week's crucial inflation data. Meanwhile, the global cryptocurrency market cap surged by 1.7% to around $2.33 trillion in the last 24 hours.

Today, Bitcoin is trading at $60,620, marking a 4% decrease over the last 24 hours. The cryptocurrency’s recent uplift is attributed to dovish economic data from the U.S., hinting at possible Federal Reserve rate cuts.