Global asset management company Algebris Investments has stated in a report that the tone of global central bank officials at the Jackson Hole Economic Symposium was balanced.
The report states, “Overall, this year’s meeting was not a significant market catalyst, and as such, risks may ease in September, and rate hikes could be put on hold, particularly after the turbulence of August.”
Algebris expects the Federal Reserve to maintain rates unchanged until the first quarter of 2024, after which a discussion about rate cuts might arise. They also anticipate that the European Central Bank will raise rates once more in September and then follow the Federal Reserve’s path by keeping rates unchanged.
“It is expected that the European Central Bank’s last rate hike will occur at the September meeting, but with inflation continuing to drop and economic growth slowing down, the hawkish stance for the fourth quarter will significantly weaken.”
