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Meanwhile, despite the European Central Bank’s (ECB) record interest rate hike to 4%, apprehensions about an economic slowdown persist. Some ECB council members are of the opinion that the current borrowing costs are sufficiently high, suggesting no immediate necessity for additional hikes.
In the United States, the robust economy has shown a steady Gross Domestic Product (GDP) growth of 2.1% in the last quarter. This has led to a divergence of views among economists regarding a possible Federal Reserve rate hike in November. The debate continues amid high inflation and economic challenges.
The US Core Personal Consumption Expenditures (PCE) Price Index was recorded at 0.1%, lower than the expected 0.2%. Despite market sentiment suggesting that the Federal Reserve has concluded its cycle of rate hikes, Fed officials anticipate maintaining elevated rates for an extended duration.
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