More central bank rate cuts coming before any hike

Frankfurt

GLOBAL interest rates are likely to go even lower before they rise as financial market volatility and the spectre of deflation raise fresh doubts about central banks' ability to fulfil their mandates, policymakers and economists said.

With markets in turmoil and talk of further Chinese currency devaluation intensifying, expectations for US rate hikes this year have all but evaporated and central banks from Europe to Canada and Australia are preparing the ground for more easing.