November 19, 2023 23:46 GMT
Terminal Rate Expectations Soften In $-Bloc & Easing Expectations Increase
Market expectations for terminal interest rates in the $-bloc have softened over the past two weeks.
- Terminal rate expectations and the cumulative tightening currently stand at: 5.33%, 0bps (FOMC); 5.02%, +2bps (BOC); 4.43%, +11bps (RBA); and 5.54%, +4bps (RBNZ).
- Easing expectations have also gathered momentum outside of Australia, with June’24 easing at 33bps, 30bps and 23bps in the US, Canada and NZ respectively. By contrast, Australia has 5bps of easing priced by Jun'24.
Figure 1: $-Bloc STIR
Source: MNI – Market News / Bloomberg
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