The pressure is ramping up in the market as to whether the ECB will cut interest rates next week. Various banks are trumpeting their guesses from their corporate towers. Here’s a selection so far.
- Morgan Stanley expect a cut of 0.25% by June and 0.50% cut in the marginal lending rate and small scale changes in market operations
- Credit Suisse see a 0.25% cut next week
- RBS looking for a June cut
- UBS are going for 0.25% cut next week along with a 0.50% cut in MLR
- BOA Merrill Lynch thinks that data is not weak enough to cut in May, though chances have increased. Nice bit of fence sitting there.
- JPM are going for aJune cut of 0.25%
- Barclay’s say, a cut in May
- Commerzbank say a May cut more likely with the recent poor PMI releases
So there you have it. Some of the worlds finest putting their stalls out.
Which way are you swinging? Cut or not cut?