Fed to Cut Rates, BOJ, BOE to Hold Rates

  • Monday, July 29, 2019

Welcome to “The Cyborg Analyst” by Prattle. This report provides weekly, quantitative insights on G-10 currency central banks.

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Before heading into peak summer vacation mode in August, the Fed, BOJ and BOE are all convening for policy meetings this week. The BOJ and BOE are both likely to hold rates but signal willingness to cut in the relatively near future. The Fed is likely to cut rates 25bps while signalling that further stimulus could be on the horizon. That said, many Fed watchers appear to be expecting policymakers to clearly signal that a second 25bps rate cut is imminent. Given the Fed’s relatively neutral sentiment, it is much more likely that Chairman Powell will signal willingness to cut again but stop short of an outright commitment.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s Central Bank Analytics.