Barclays analysts still expect the Fed to cut rates once this year. "The current risk is that the Fed will not cut rates this year," they said in a client note. "To some extent, we place more emphasis on the non-benchmark scenario where interest rate hikes enter the discussion." (Jin Ten)
Barclays analysis said the Bank of England is expected to vote 8-1 in favor of keeping interest rates unchanged and reducing its asset purchase facility (APF) holdings by 100 billion pounds. "We believe there is some probability that Ramsden and/or Taylor will vote with Dingella for a rate cut, so there is a risk that our 1-8 voting ratio is expected to lean 3-6." The tone of the meeting statement is expected to remain cautious, while acknowledging further progress towards a sustainable return o...