Commerzbank: The Fed’s “small step” cannot rule out subsequent “big moves”

Odaily Odaily News: Commerzbank analyzed that after the European Central Bank took the lead in cutting deposit rates by 25 basis points last week, some other central banks will announce their policy decisions this week. In the end, most decisions may keep interest rates unchanged-except for the most important one, of course. It would be a big surprise if the Fed did not start the rate cut cycle on Wednesday. The bank's analyst Volkmar Baur pointed out: "At the beginning of this week, the market expected the probability of the Fed's first major rate cut to be slightly more than 50%. Our economists still expect a 25 basis point rate cut, and for good reason." "However, a small first step does not rule out big moves later. That's why the current risks are tilted towards a weak dollar." (Jinshi)