Rising Economic Activity Challenges Central Bank Rate Cut Plans

Global business activity improved this month, especially in parts of Asia and Europe, which may delay central banks’ plans to cut interest rates. Borrowing costs had been raised post-COVID to tackle inflation, and there’s now speculation about when and how much they might be reduced. Politicians, facing upcoming elections in India, the US, and the UK, may welcome relief for indebted consumers. Despite previous slowdown fears, the global economy is expected to remain strong through 2025, with economists predicting persistent inflation that could influence future rate decisions.