Nordic Outlook: A race between interest rate cuts and recession risks
After a late-summer bout of stock market turbulence, falling interest rates and a weaker dollar, markets have calmed down and adapted to US economic deceleration and expected rate cuts from the Federal Reserve. The fight against inflation has been successful, and central banks are on the way to taking clearer steps towards interest rate normalisation. The Fed will start its rate cutting cycle in September with a reduction of at least 25 basis points, and the European Central Bank’s rate cuts will continue during the autumn. Growth gaps are narrowing as the United States and China slow down
