High inflation is expected to impact the world economy next year, with economists forecasting that it may turn out to be higher than initially predicted [d4605f00]. This suggests that interest rates will remain higher for a longer period [d4605f00]. While some central banks were expected to begin cutting interest rates by mid-2024, economists are now adjusting their views and pushing the likely date into the second half of next year [d4605f00]. The latest survey of over 500 economists revealed downgrades in growth forecasts and upgrades in inflation forecasts for a majority of the 48 economies surveyed [d4605f00]. A majority of economists also believe that the risk to these inflation forecasts is skewed higher [d4605f00]. The survey results come after the unexpected growth of nearly 5% in the US economy in the third quarter, setting it apart from other economies [d4605f00]. European Central Bank President Christine Lagarde has warned against premature discussions of rate cuts [d4605f00]. While central banks have presented a "higher for longer" narrative on rates, some economists and traders remain skeptical [d4605f00]. The first rate cut is expected to be prompted by a desire to make real interest rates less restrictive as inflation falls [d4605f00]. Only a minority of economists expect a significant hit to demand and inflation that would warrant a monetary response [d4605f00]. Central banks will need time to achieve global growth above historical averages [d4605f00].