What Investors Expect Central Banks to Do in 2011 and 2012
September 16, 2011
Central Bank Interest Rate Expectations can and do change based upon economic and market developments. The last time I provided updated CB expectations was in July (yes, I apologize for being tardy) but since then we have seen major changes in investors expect central banks to do this year and next.
Here are the cliff notes
FED - Nada for 2011 and 2012
ECB - 25bp rate cut by Dec?! (In July no rate hike or cut was expected for 2011 and 1H2012)
BOE - Nada for 2011 and 2012 but slight shift to dovish bias
BOC - Rate Cuts now expected in 2012, down from rate hike by April
RBA - Major Rate Cuts Expected - 100bp by year end?!
RBNZ - No Major Changes, Rate Hike Expected March 2012
And here are the details:
Posted in Bank of Canada, Bank of England, Bank of Japan, ECB, Fed Rate Cut Expectations, Federal Reserve, Reserve Bank of Australia, reserve bank of australia intervention, reserve bank of new zealand
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October 31st, 2011 at 2:02 pm
[...] what the market is pricing in according to interest rate futures. You can compare them with the Central Bank expectations back in September. What is interesting is that the market does not expect the ECB to cut interest rates this year even [...]