Snapshot - Strategy & economics
Caspar Rock: Monday markets - the week ahead on 17 June
Market expectations of a rate cut are growing, and this week sees a lot of central bank action with meetings of the Bank of England and the Bank of Japan, and the ECB’s forum gathering at Sintra
- Over the last month interest rate expectations have moved from a 15% probability of a cut in July to 82% today
- We think the most likely outcome is no change of rates but more dovish comments from central banks
- In the UK there will be further rounds of voting in the Conservative Party leadership elections, and by the end of the week we will be down to two candidates. It will still be a month before the final result is known
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