David McNamara: Central banks maintain 'not just yet' messaging on rate cuts

Markets are still expecting up to 130 basis points of cuts to interest rates in 2024

European Central Bank president Christine Lagarde.

Further significant declines in inflation look to be in store this spring virtually everywhere, as large price increases a year earlier drop out of the annual comparison. 

However, the continued easing of inflation may not be enough to trigger a rate cut by the main central banks in early 2024 as markets expect, with policymakers looking for a sustained return to the 2% target before committing to rate cuts this year.