• Pleased with recent shift in expectations
• Headline disinflation is going quicker than expected but core prices still remain uncertain
• Prefers June rate cut, then „smooth and steady cycle of policy easing“

The odds of an April rate cut are now just at ~37%, with a June rate cut fully priced in. Meanwhile, the total rate cuts priced in for the year is 91 bps. That is quite a drastic shift compared to where we were just two months ago as seen here.

This article was written by Justin Low at www.forexlive.com.