London — Global equity markets rallied sharply this week after the US Federal Reserve, European Central Bank, and Bank of England each cut interest rates within a 48-hour span, the first time the three have moved in near-unison since the early days of the pandemic.
The MSCI World Index climbed 3.2 percent over three sessions, with technology and real estate stocks leading gains as investors priced in cheaper borrowing costs. Bond yields fell in tandem, with the yield on 10-year US Treasuries dropping to its lowest level in eighteen months.
Central bankers cited cooling inflation and softening labour markets as justification for the coordinated easing. Some economists warned the synchronised cuts could reignite asset-price inflation if paired with continued fiscal stimulus, while others argued the moves were overdue given slowing global growth.