Global rate-cut standoff looms in 2023 policy finale

While the eurozone could well be in a recession, and policymakers acknowledge that the labour market is showing signs of turning, they aren’t fully convinced that the danger to consumer prices has passed, and want to see more wage data.

ECB president Christine Lagarde will probably try to temper market expectations that price in a quarter-point rate cut in April. Picture: Arne Dedert/dpa via AP

From Washington to Frankfurt to London and beyond, central bankers are approaching their final decisions of the year against a backdrop of unease at how the global inflation cycle is turning.

Policymakers from fully half of the Group of 10 jurisdictions of most-traded currencies are scheduled to meet in the coming days, and interest rates for 60% of the world economy will be set in a whirlwind 60-hour window.