Central Banks’ Rate Cuts: Misconceptions and Benefits

Understanding Why Central Banks Cut Interest Rates

In recent times, central banks across the globe are either contemplating or actively cutting interest rates. This decision is not without its fair share of debate. Critics argue that these cuts might not effectively prevent a recession and could even worsen economic woes. However, economists, particularly from TS Lombard, emphasize the potential benefits of these rate cuts and suggest that central banks' strategies should be perceived more positively.