Economics
Traders Bet Central Banks Won’t Keep Calm Over Virus for Long
- Money markets expect policy action in response to virus
- Doubts remain on rate cuts’ ability to offset economic threat
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Investors aren’t buying the idea that central banks’ wait-and-see approach to the coronavirus will last, ramping up bets on interest-rate cuts that could start within months.
Money markets now see three Federal Reserve reductions this year -- starting next month -- and one by the European Central Bank in July. The Bank of England will cut in May, according to a similar metric.