Latest Data: Major Changes to Rate Hike Expectations

The volatility in the financial markets has led to major changes in rate hike expectations. Here are the latest numbers and the highlights compared to a month ago (see Feb numbers):

Fed – One 25bp rate hike expected by Q1 2012 instead of 50bp
BoE – One 25bp rate hike expected this year instead of 75bp
ECB – No major changes, still 50bp by year end and 75bp by Q1 2012
RBA – Now a bias to ease, from one 25bp rate hike expected before
RBNZ – One rate hike in March 2012 down from two by Jan 2012
BoC – 50bp now expected for Feb, down from 100bp

About Kathy Lien 236 Articles

Kathy Lien is an Internationally Published Author and Chief Strategist of, one of the world’s most popular online websites for currency research. Her trading books include the highly acclaimed, Day Trading the Currency Market: Technical and Fundamental Strategies to Profit form Market Swings (2005, Wiley); High Probability Trading Setups for the Currency Market E-Book (2006, Investopedia); and Millionaire Traders: How Everyday People Are Beating Wall Street at Its Own Game (2007, Wiley). As Chief Currency Strategist at FXCM, Kathy is responsible for providing research and analysis for DailyFX, the research arm of FXCM. She also co-edits the BK Forex Advisor, an Premium Service with Boris Schlossberg – one of the few investment advisory letters focusing strictly on the 2 Trillion/day FX market.

Kathy is also one of the authors of Investopedia’s Forex Education section and has written for, the Asia Times Online, Stocks & Commodities Magazine, MarketWatch, ActiveTrader Magazine, Currency Trader, Futures Magazine and SFO. She is frequently quoted by Bloomberg, Reuters, the Wall street Journal, and the International Herald Tribune and has appeared on CNN, CNBC, CBS and Bloomberg Radio. She has also hosted trader chats on EliteTrader, eSignal and FXStreet, sharing her expertise in both technical and fundamental analysis.

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