Posted in: Weekly Round Up
Fed to begin rate-cutting cycle in September
Last Friday’s weaker than expected employment report in the US prompted fears of an impending recession and sparked a dramatic reaction in financial markets, with bond yields plunging, stocks selling off sharply and the dollar weakening. While these moves have been substantially reversed since, the market sees the Fed kicking off what is expected to be the start of a sustained rate-cutting cycle at its September meeting. The ECB is also expected to cut rates next month, while the Bank of England (BoE) is seen following up this month’s quarter-point cut with another 25bps move by November at the latest.
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