Global Inflation Falls to 2.1%: Central Banks Begin Rate Cuts

In a significant shift for the global economy, inflation across major economies has fallen to an average of 2.1%, prompting the Federal Reserve, European Central Bank, and Bank of England to announce coordinated interest rate cuts.

The Numbers

The Fed cut rates by 50 basis points to 3.25%, while the ECB reduced to 2.5% and the Bank of England to 3.0%. Markets rallied on the news, with global stocks gaining $2.8 trillion in value in a single trading session.