What Investors Expect Central Banks to Do in 2011 and 2012

Central Bank Interest Rate Expectations can and do change based upon economic and market developments. The last time I provided updated CB expectations was in July (yes, I apologize for being tardy) but since then we have seen major changes in investors expect central banks to do this year and next.

Here are the cliff notes

FED – Nada for 2011 and 2012

ECB – 25bp rate cut by Dec?! (In July no rate hike or cut was expected for 2011 and 1H2012)

BOE – Nada for 2011 and 2012 but slight shift to dovish bias

BOC – Rate Cuts now expected in 2012, down from rate hike by April

RBA – Major Rate Cuts Expected – 100bp by year end?!

RBNZ – No Major Changes, Rate Hike Expected March 2012

And here are the details:


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