ECB could ease further – TDS

Global Strategy team at TD Securities sees the European Central Bank cutting its rates further following ‘Brexit’ induced uncertainty.

Key Quotes

“We would expect the ECB to cut rates 10-20bps further”.

“As with the UK, they can wait until later in the summer as the lower currency can help for now and the ECB will want to see how the initial demand surveys come in”.

“For the Fed, we tentatively push off the next Fed hike to June 2017, and would assign 30% chance to a Fed rate cut this year, but only if downside risks materialize”.