Two basic questions
Many times I see phrases like:
A 25bp cut at the March meeting is now fully priced and on a one-year horizon, three Fed cuts are priced. However, markets' hopes rest not only on the Fed but also on the ECB cutting rates by 10bp by end-2020.
My questions are:
Many times I see phrases like:
A 25bp cut at the March meeting is now fully priced and on a one-year horizon, three Fed cuts are priced. However, markets' hopes rest not only on the Fed but also on the ECB cutting rates by 10bp by end-2020.
My questions are:
- What does it mean, exactly, when they say, for example, a rate cut is 65% priced?
- How do I know these figures? Do you know a link or something?
Thank you all ...