The Federal Reserve is likely to cut rates before the European Central Bank does, a former member of the Bank of England said.
The U.S. Federal Reserve is likely to cut interest rates before the European Central Bank does, a former member of the Bank of England said, defying current market expectations.
Julius explained her forecast was based on the Fed's dual mandate, which looks at both inflation and employment in the U.S. economy. The latest job figures pointed to a buoyant U.S. labor market, and inflation has also dropped though it is still above the Fed's 2% target. "The labor market adjusts more quickly. I don't think the Fed will move very much, but I suspect that there could well be a little move there, somewhere, towards the second half of the year," Julius added. "And that would create a little space and maybe a little pressure even on the Bank of England ... whose economy is, of course, tied to the U.S. economy, and the European economy.
European Central Bank Christine Lagarde Euro Central Banking Economic Events Prices Politics Europe News Business News
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Former Bank of England member predicts Fed will cut rates before ECBA former member of the Bank of England predicts that the U.S. Federal Reserve will cut interest rates before the European Central Bank, defying market expectations.
Read more »
Central Bank Bonanza: The Fed, RBA, BoJ and BoE to Provide Policy UpdatesCentral Bank Bonanza: The Fed, RBA, BoJ and BoE to Provide Policy Updates
Read more »
Forex Today: The Fed, the whole Fed and nothing but the FedThe Greenback managed to maintain its multi-session constructive bias well and sound and propel the USD Index (DXY) back above 104.00, albeit ephemerally.
Read more »
EUR/GBP rebounds from 0.8530 despite hopes that BoE to reduce rate cuts later than ECBThe EUR/GBP pair bounces back strongly from 0.8530 in the European session on Friday.
Read more »
ECB’s Muller: We're closer to point where ECB can start cutting ratesEuropean Central Bank (ECB) policymaker Madis Muller said on Tuesday that “we're closer to a point where ECB can start cutting rates.” Additional quotes Data may confirm inflation trend for ECB’s June meeting.
Read more »
Europe could lower rates ahead of Fed, ECB's Holzmann saysEurope could lower rates ahead of Fed, ECB's Holzmann says
Read more »