Contrary to the earlier assumption that the US Federal Reserve would lead the monetary policy loosening cycle among advanced economies, it is Switzerland and Sweden that have cut first. This has reflected a combination of weaker inflation and softer activity, which should soon also apply to the euro-zone and UK. But Europe won’t be on its own for long as Canada joins the pack in June and the US in September.
Note: We’re holding a special online briefing on the ECB’s June meeting at 1000 ET/1500 BST on Thursday, 6th June. Click here to register.
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