Most of the developed world is still raising rates.
But the pendulum is finally starting to swing the other way.
A Good Site To Bookmark
There are lots of places where you can go see interest rates.
The cleanest one to me (once you get past the ads) is right here at FXStreet.
All I really want to see is the current vs previous, and when it happened. This site gives you exactly that all on one page.
If you go check it out, you will notice some very interesting observations.
- With all the talk about the US raising rates at a crazy pace, many other countries have done the same
- Some countries have likely started the “flattening” process where they are pausing and taking a sit-and-wait approach. This usually proceeds the cutting phase.
- A few countries have began to cut, mainly China. UK has been seriously considering it.
Note the other countries who are cutting. Such as Poland.
There have been people suggesting that the country has a lot going for it, but if you look under the financial hood, it’s actually pretty bad over there. So I wasn’t too surprised.
The ‘B’ in BRICS has cut as well. That’s two BRICS nations who are cutting already. Make of this what you will.
And then you have Chile and Peru cutting. Very interesting.
Apart from geography, what do those two countries have in common? If you have forgotten…
I think it won’t be at least until next year until the USD starts cutting, even though yes, time predictions are for the birds.
But the US could be one of the last to cut, which would make it an even stronger and more attractive choice for an upcoming recession than it already is.
I continue to stack fiat, and USD in particular, and have been avoiding risk-on assets.