Central banks across the world are preparing for what analysts describe as a "coordinated pivot" in monetary policy, with the Federal Reserve and European Central Bank both signaling potential interest rate cuts in the coming months.
The shift comes as inflation rates in major economies have fallen closer to target levels, while concerns about economic growth have moved to the forefront of policymakers' minds.
What This Means for Markets
Stock markets rallied on the news, with major indices posting their best weekly gains in months. Bond yields fell sharply as investors priced in lower future rates.
"This could be the beginning of a new era of accommodative monetary policy," said a senior economist at a major investment bank. "The implications for everything from housing to corporate investment are enormous."
