2024 is the year of the rate cut pivot — here's when the world's central banks will budge

As inflation loosens its grip in most economies, investors are closely monitoring interest rate decisions, with markets expecting a slew of rate cuts this year.

While rates in most economies are set to remain elevated in 2024, economists expect a mild rollback late this year, the Economist Intelligence Unit said in a recent report. Most central banks sharply hiked policy rates from early 2022 in a bid to stifle inflation.

China and Japan remain exceptions in the global tightening cycle, though Beijing's rates have started to ease slightly, said the global intelligence firm. EIU also expects the Bank of Japan will exit its negative interest rate policy in the second quarter.

U.S. Federal Reserve Chair Jerome Powell reiterated last week that he expects interest rates to start coming down this year should inflation signals cooperate, but stopped short of giving a specific timeline.

Inflation as assessed by the Fed's preferred gauge currently stands at an annual rate of 2.4%, remaining ahead of the Fed's 2% goal. 

The Fed held rates steady in a range of 5.25% to 5.5% in its January meeting. Markets currently expect the Fed to start with a 25-basis-point rate cut in June.

The European Central Bank last week also held its policy rate at a record high of 4%, signaling that it won't cut rates before June.

The central bank acknowledged that inflation was easing faster than it anticipated and lowered its annual inflation forecast from an average of 2.7% to 2.3%. The ECB has a 2% inflation target.

Swiss inflation in February rose 1.2% from a year ago, the lowest reading in almost two and a half years, fueling hopes that the Swiss National Bank could trim interest rates in its March 21 meeting.

The SNB's current policy rate stands at 1.75%,