Central Banks
Traders Boost Global Rate-Cut Wagers After Fed’s Dovish Pivot
- Moves cascade across markets, lifting stocks, hitting dollar
- But strategists warn pushback likely from ECB, BOE officials
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Traders ramped up bets on interest-rate cuts around the world ahead of European Central Bank and Bank of England policy decisions later Thursday, as global markets adjust to the Federal Reserve’s pivot toward looser policy.
Investors are now pricing in at least six quarter-point cuts in 2024 by both the Fed and the ECB, and five for the BOE. The moves follow the US central bank’s signal that its historic policy-tightening campaign is over, with officials projecting aggressive monetary easing to come.