Continued service sector price rises at this rate are not consistent with sharp interest rate reductions to stimulate more spending by consumers and businesses. — Reuters
PERSISTENT price rises by US service sector businesses have underscored the stickiness of inflation and pushed back expectations for interest rate reductions in 2024, jeopardising hopes for a successful soft landing.
Traders now expect overnight interest rates to decline by 75 basis points before the end of the year, with the first cut not until May or probably June, after prices rose faster than expected in data published on Feb 13.
