Global Rate Cuts Accelerate as Fed Joins Cycle – 88 Cuts Recorded in 2025
With 88 rate cuts worldwide this year, 2025 is on track for the third-fastest global rate cutting cycle, according to BofA, as major central banks like the Fed, ECB, and BoE take action.
Summary
The Federal Reserve is set to join a global trend of rate cuts, with 88 rate reductions recorded globally in 2025, the most since 2020. This puts the year on course to become the third-fastest global rate cut cycle in history, as central banks such as the European Central Bank and Bank of England also lower rates, according to Bank of America (BofA).
Terms & Concepts
- Rate Cut: A reduction in the interest rate by a central bank to stimulate economic activity, often in response to slowing growth or inflation.
- European Central Bank (ECB): The central bank for the eurozone, responsible for managing monetary policy and the euro currency.
- Bank of England (BoE): The central bank of the United Kingdom, responsible for setting monetary policy and regulating the financial system.