See cuts starting in September

Bank of America Merrill Lynch, see the Fed cutting interest rates by 75 basis points by early 2020. They see rates starting to be cut in September.

They add:

  • See PBOC cutting a Chinese interest rates twice in 2019, and once in 2020 (keeping pace with the US)
  • Downgrade US 2nd half 2019 GDP growth view to 1.2% from 1.8% previously
  • Lowers annual GDP growth view on China in 2020 to 6% from previous estimate of 6.2%
  • Cuts GDP growth view on Mexico to 0.7% from 1% for 2019 and to 1.2% from 1.5% in 2020