”We expect another 50bps rate cut by the FED at the next meeting in November, followed by a series of 25bps rate cuts, bringing the federal funds target range down to 3.25%–3.5% by May 2025, in line with our estimate of a neutral level. The SNB was the first G10 central bank to start cutting interest rates in this cycle. Since March 2024, it has cut its policy rate by a total of 50 basis points (bps). At the upcoming meeting on 26 September, we expect a third and final 25bps rate cut, bringing the policy rate to 1.0%, which we believe is the SNB’s estimated neutral level. The BoE held its policy rate at 5.00%, judging that a restrictive stance is still needed for inflationary risks to dissipate further.” Læs hele analysen her.
Morten W. Langer
