Fed to cut rates in July and September - NAB

The US Federal Reserve will likely cut rates by 25 basis points in July and September and the riks is slanted toward the central bank making more rate cutes than fewer, according to analysts at National Bank of Australia (NAB). 

It is worth noting that rates markets are fully priced in for a rate cut in July and is pricing two more rate cuts after that. 

Key points

• We expect two 25bp reductions in July and September.
• Considerable event risk around these projections, including the upcoming meeting between the US and Chinese Presidents