DislikedIMO-these traders are wrong on 2 accounts. First, the BoE will not raise twice more. Why? Because they've said they won't, based on their own inflation projections. Be aware that they projected inflation to spike up-which it has-and then turn lower with rates going only to 5.5%. Second, the Fed will not lower interest rates this year. Why? They have an inflation bias, inflation has worsened so far this year, they've projected inflation to trend down later in the year and it will take months for it to trend down enough so that the Fed moves to even a neutral bias. Even at that point, growth will have to be anemic for them to lower the rate and by their own projection, growth looks to pick up by then.Ignored
I couldn't agree more.