Many central banks around the world, led by the US Federal Reserve, will announce new interest rate decisions this week. The Fed, which is at the helm of the US, the world’s largest economy, is also certain to cut interest rates.

50 or 25?

In the markets, which largely priced a 25 basis point cut until last week, the expectation of a 50 basis point cut started to increase. This situation also brought an increase in Bitcoin, gold and stocks. In CME, which measures the expectation of the markets in futures transactions, the 50 basis point discount rate has increased to 60%… The Fed last cut interest rates 4 years ago during the coronavirus crisis (March 2020).

Like the Fed, the CBRT, the Bank of England, the Central Bank of Brazil and the Norwegian Central Bank will announce their new interest rate decisions this week.

“We are now in the discount period”

John Bilton, head of asset management strategies at JPMorgan, told the US media, ‘We have now entered the interest rate cut period. All conditions are ready for this.’
The Fed’s new interest rate decision will be announced at 21:00 on Wednesday. Powell, the head of the institution, will make statements at 21.30 and will answer the questions of members of the media.