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Fed Rate Cut Strains Central Bank Peers With Less Room to Follow

  • ECB and BOJ’s negative rates could mean less room to cut
  • Bank of England might be forced to cut rates close to zero
Christine Lagarde

Christine Lagarde

Photographer: Alex Kraus/Bloomberg

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The Federal Reserve’s decision to slash U.S. interest rates to contain the economic damage from the coronavirus leaves policy makers in Europe and Japan under more pressure from investors to follow suit even though they have less scope to do so.