Deutsche Bank: The Fed's "Small Step" Doesn't Rule Out Subsequent "Big Moves"
Deutsche Bank Analyzes Central Bank Decisions: US Fed Rate Cut Expected
Deutsche Bank analysts say that following the European Central Bank's 25 basis point cut in deposit rates last week, other central banks will announce their policy decisions this week. While most decisions are likely to maintain interest rates, there's one key exception.
If the Federal Reserve does not begin its rate-cutting cycle on Wednesday, it would be a big surprise. Volkmar Baur, an analyst at the bank, noted: "At the beginning of the week, the market expected a greater than 50% chance of the Fed making its first significant rate cut. Our economists still expect a 25 basis point cut, for good reason."
"However, a small first step doesn't rule out bigger moves later on. That's why the current risk is leaning towards a weaker dollar," he added. (Golden Ten)