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Mubasher: Investors continue to speculate on the next US interest rate cut of 25 basis points at the Fed's next meeting, after economic growth data and the ECB's decision.
The Federal Futures Supervision Agency (AMC) announced on Friday that there was a 80.6% chance of a 25 basis point reduction (0.25%) when the next monetary policy meeting.
The forecast of interest rate reductions between 2.00 and 2.25% reached 81.2% yesterday.
Official data now shows that US economic growth has slowed to initial estimates for the second quarter of 2019, but has nevertheless exceeded badysts' expectations.
The basic index of consumer prices (CPI), which excludes food and energy costs – the Federal Reserve's favorite instrument for monitoring inflation and inflation. thus set the interest rates – has approached the 1.8% inflation target set by the Bank.
Market expectations fell on yesterday's decision by the ECB to take no concrete action, which was followed by contradictory comments from bank president Mario Draghi.
From CMMA to follow market expectations
The interest rate forecast at 50 basis points dropped to 19.4% today, compared to just under 50% at the end of last week, with comments from the head of the Bank Reserve of the State of New York.
US policymakers are scheduled to meet on July 31 to announce their interest rate decision.
While market expectations for the Fed's meeting scheduled on September 18 suggest that there is a 55.7% chance of a 50 basis point reduction in interest rates in the Hypothesis of a lack of action at this month's meeting.
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