kelvinjay/iStock via Getty Images
By Michiel Tukker, Benjamin Schroeder, and Padhraic Garvey, CFA
A move lower in US rates could overprice the number of Bank of England cuts
We think the Bank of England will cut the policy rate
Rates Spark: The Fed Is Talking A Lot But The BoE Will Deliver
Summary
- The Fed was balanced, but yields managed to edge lower on rate cut optimism; cuts are still seen as inevitable, eventually.
- The Bank of England will likely cut rates, but this won't come as a surprise to the market.
- Having said that, sterling rates remain sensitive to moves in US rates, which puts markets at risk of pricing in too many more cuts in the near term.
From Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.