According to ChainCatcher, asset management company Vanguard predicted in a report that the European Central Bank will start cutting interest rates in June, which is different from the expectation for the Federal Reserve, which is expected to remain on hold for the rest of the year. Although the ECB's policy usually lags behind the Fed's policy, "this time is different."
The agency said: "Domestic conditions in the euro area are different enough to justify divergent monetary policies." Refinitiv data showed that money markets expect the Federal Reserve to cut interest rates by 35 basis points and the European Central Bank to cut interest rates by 62 basis points in 2024.
