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Nomura Are First To Call For Rate Cut

FED
  • Nomura call for a 25bp rate cut from the FOMC next week "in reaction to looming financial stability risks".
  • They "also expect the Fed to stop quantitative tightening", noting that “ending QT should help keep the amount of reserves more ample than they would be otherwise.”
  • They are the first analyst we've seen call for a cut, coming after Barclays, Goldman Sachs, NatWest and Wells Fargo earlier all called for a pause whilst Deustche Bank revised down their terminal forecast 50bps to 5-5.25% although that still sees another 50bp of hikes from current levels.

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