Who will follow the Swiss lead and cut interest rates?

With tightening cycle close to an end, analysts expect wave of rate cuts in June

The inflection point in the global monetary policy cycle is nearing, as Switzerland became on March 21 the first major Western central bank to begin cutting interest rates after a period of hikes to tame inflation.

It seems all but certain that the tightening cycle that began two years ago is close to an end, with the only question being when other major central banks will follow in reducing rates, even if many analysts foresee a wave of cuts in June.

EUROPEAN CENTRAL BANK (ECB)

French central bank chief Francois Villeroy de Galhau said at the beginning of March that he considers it "very likely" that the ECB will make its first cut in the "springtime", with the euro zone's central bank to hold two spring meetings in April and June.

The meeting on April 11 appears to be premature, with the June 6 gathering of policymakers seeming more likely after Ms Christine Lagarde, president of the ECB, said recently that the institution would know much more about the economic situation in the euro zone by the later date.

She warned earlier this week about the risk of acting "too late" on interest rate cuts.