Bank of Canada Can Stomach Faster Rate Cuts Than the Fed, Say Economists

The Bank of Canada could cut its benchmark interest rate up to three times before the Federal Reserve begins moving rates lower, say economists, downplaying the risk of a widening policy rate gap between the central banks.

Yahoo Finance26minutes ago

Is the Bank of Canada nearing an interest rate cut? Will they take the first step in June?

Since 2024, Canada's inflation has been developing in the right direction, with investors believing that there is over an 80% chance of a rate cut in June.

FX678 Finance14:02 ET

European Central Bank's interest rate decision ahead of the euro outlook: technical analysis of EUR/USD, EUR/CHF.

The euro/US dollar benefited from a weakened US dollar, and is expected to rise further if US data disappoints; Swiss Franc is supported by the inflation comments from Swiss National Bank Chairman Jordan.

FX678 Finance13:21 ET

The final value of the Eurozone's manufacturing PMI in May was slightly revised down, but it still hit a 14-month high.

The contraction rate of Eurozone manufacturing has slowed for the third consecutive month, and production activities are approaching stability. In addition, the contraction of new orders, exports, and purchasing activities has also slowed, and business confidence has further increased. According to the HCOB report published by S&P Global on Monday, the final value of the Eurozone manufacturing PMI in May was 47.3, down 0.1 percentage point from the initial value of 47.4, but still a 14-month high, compared to 45.7 in April. The manufacturing business climate is still declining, but the degree of decline has dropped to the lowest level in more than a year. The output index in May rose to 49.3, also a 14-month high, indicating that production continues to trend towards stability.

wallstreetcnJun 3 07:00 ET

ECB to Make the First Move

ECB meets on Thursday; a rate cut is expected

FXStreetJun 3 05:40 ET

German Economy Minister: Expect European Central Bank to begin a loose cycle soon, hoping for further interest rate cuts in the future.

Zhītōng Cáijīng APP learned that German Economy Minister Ha Beck stated that he hopes the European Central Bank will further reduce interest rates after the expected monetary easing cycle beginning this week. Ha Beck said at an East German business forum in Badasalo near Berlin on Monday: "The inflation rate is falling back to 2%. I believe that the European Central Bank will soon lower key interest rates and hope that interest rates will be further reduced afterwards." Currently, it is widely expected that the European Central Bank will cut interest rates by 25 basis points on Thursday, reducing the deposit rate from last year's record high of 4% to 3.75%. Chief European economist at Morgan Stanley.

Zhitong FinanceJun 3 05:28 ET