Commerzbank: The Fed’s “small step” cannot rule out subsequent “big moves”
According to Odaily, the German Dai Bank analysis indicates that after the European Central Bank lowered the deposit rate by 25 basis points last week, other central banks will announce their policy decisions this week. Most decisions are likely to keep interest rates unchanged - except for the most important one. If the Federal Reserve does not start a rate cut cycle on Wednesday, that would be a big surprise. Volkmar Baur, an analyst at the bank, pointed out: "At the beginning of this week, the market expects the possibility of the Federal Reserve's first major rate cut to be slightly higher than 50%. Our economists still expect a 25 basis point rate cut, which is well-founded." "However, a small first step does not rule out bigger moves later. That's why the current risk bias is towards a weakening of the dollar."
