Yesterday, the markets were impacted by new inflation figures from the USA, which were higher than expected. More specifically, consumer prices rose 3.5% from a year ago in March. The inflation figures indicate that it may take some time before interest rate cuts occur. The markets had previously anticipated that the Federal Reserve would lower interest rates in June, but now it is expected to happen by September.
Later this afternoon, the European Central Bank will hold its April meeting to discuss monetary policy decisions. In the previous meeting held in March, the ECB hinted at a possible interest rate cut in June. As a result, there is a sense of anticipation that this move will be reiterated in today's meeting.
China is still the largest contributor to the global economy, despite its recent slowdown, according to the Asian Development Bank. The ADB forecasts China's GDP growth rate to be 4.8% by 2024, slightly lower than the country's target of around 5%. Nevertheless, China is projected to drive growth in the rest of Asia and the world.