Fed likely to cut rates before ECB blinks, former BOE member says

PUBLISHED THU, APR 11 20241:11 AM EDT

KEY POINTS

• 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.
• Market players are currently pricing in a 92.8% chance that the ECB will cut rates in June from the historically high level of 4%, according to LSEG data.
• The same database shows only a 53.5% chance of a cut by the Federal Reserve at their June meeting.

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.

“I suspect that the Fed will be the first to really put a cut in,” DeAnne Julius, a founding member of the Monetary Policy Committee of the Bank of England, told CNBC on Tuesday.