Central Banks Slowly Pivoting to Rate Cuts
by AIB Treasury Economic Research Unit
- Following the ECB’s hold in January, the latest Fed and Bank of England meetings saw them announce their own (non) decisions on rates.
- The expected pivot signalled by the Fed was in dropping its tightening bias by removing the reference to the “extent of any additional policy firming”
- Market rate expectations are considerably more conservative for the Bank of England, with a first cut priced in for June and around 100bps of policy easing anticipated by year end.
- On currency markets over the past week, the main pairs have seen some volatility, albeit contained within well-defined recent ranges.
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