Everything was on the table this weekBut a consensus was reached for a 50 bps rate cut very quicklyDid not feel the need to do more than 50 bps because there is still work to do on inflationHave to make sure core inflation is sustainably at target mid-point
Her remarks are consistent with what Orr said in his press conference this week. A rate cut for their next meeting in February is fully priced in, with odds of a 25 bps move at ~68%. The remainder is tied to a 50 bps move. As for their next three meetings through to May 2025, markets are pricing in ~67 bps of rate cuts in total for now.
This article was written by Justin Low at www.forexlive.com.
