Fitch Ratings said on Wednesday that, due to worsening global economic conditions, it expects significantly deeper interest rate cuts from the European Central Bank (ECB) and central banks in emerging markets.
The revision comes amid an escalating trade war that has prompted Fitch to slash its 2025 world growth forecast by 0.4%, bringing it below 2%, the lowest since 2009, excluding the pandemic.
The shift in expectations follows sharp tariff hikes between the US and China, which Fitch says have pushed US effective tariff rates to their highest since 1909. "We now expect deeper rate cuts from the ECB and in emerging markets," Fitch stated in its report.
