Deutsche Bank: US interest rate cut sentiment is likely to continue
2025-08-04 06:58:55
Rainer Guntermann of Commerzbank Research said in a note that renewed interest rate cut sentiment in the US is likely to persist. The rate strategist said the relatively light US data calendar this week following Friday's disappointing labour market report was not enough to change the dynamic. "In addition, the Fed appears to be paying more attention to downside risks to growth, although its latest commentary still sounds cautiously balanced, while price risks from tariffs remain," he said. Expectations for a September rate cut were raised following the weak non-farm payrolls data. Market prices now reflect an 86 per cent chance of a 25 basis point cut in September, according to LSEG.
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