acemaxxSep 8, 2024
#China —- An ongoing negative GDP #deflator means that the general price level in the economy is decreasing over time, indicating #deflation - chart @economics https://www.bloomberg.com/news/articles/2024-09-07/ecb-is-poised-to-cut-rates-again-in-warm-up-act-for-the-fed?srnd=phx-markets
ECB Is Poised to Cut Rates Again in Warm-Up Act for the Fed

The European Central Bank will probably cut interest rates on Thursday in a prelude to a US move the following week, as the global monetary cycle tilts toward more synchronized easing.

Bloomberg
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#deflation increases the real value of #debt, making it more expensive for borrowers to service their loans. This can lead to financial distress for businesses and consumers, potentially resulting in #defaults and #bankruptcies.
Sep 8, 2024 at 7:22amWeb