Central banks to the rescue

The Federal Reserve has led the way with a 50bp cut to combat coronavirus fallout, and we've pencilled in two more 25bp cuts for 2Q. Will the constrained ECB now follow suit? Australia and Malaysia have already slashed rates, and next up is the swift and decisive Bank of Canada. We think they won't disappoint either

In this bundle

The Fed cuts rates in emergency move

The Fed cuts rates by 50 basis points. It signals it is prepared to do more should the coronovirus spread further. We expect a further 50bp of cuts by the…

Rates

US asset markets: What Fed cuts mean for US Treasuries and the dollar

G7 Finance Ministers and central bankers hold a conference call on the impact of the coronavirus this Tuesday. We think this could ultimately lead to the…

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Rates

Can the ECB deliver, and what are the implications for EUR markets?

The European Central Bank is at an impasse having nearly exhausted its easing options. We see more downside to core rates regardless of ECB action, but we…

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Australia

Australia’s central bank cuts rates by a quarter point, says more possible

A 25 basis point rate cut takes the Reserve Bank of Australia's official cash rate to just 0.5%. One more quarter point cut would push the central…

and

Bank of Canada: We expect a cut this week

We look for a 25bp cut by the BoC this week as coronavirus worries increasingly weigh on the economic outlook. This should translate into more Canadian…

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Rates

US market rates bracing for 1%

Equity markets have swapped their spectacles for bond market ones and are finally seeing some angst down the line. That has helped bond yields push…

Opinion

By Robert Carnell

Central banks talking a good game

Markets are taking heart from central bank comments, but nothing has actually been done yet, and the new case count for Covid-19 is accelerating. This…