David McNamara: Taking stock of where central banks stand on interest rates
President of the European Central Bank Christine Lagarde: The growing divergence between the ECB and the other majors, in particular the Fed, explains some of the recent weakness in the euro.
With all three major central banks acting as expected in their first monetary policy meetings of 2025, it is worth taking stock of where each stands and what the market outlook is for interest rates.
To recap, the US Fed held rates at current levels at its meeting, while both the European Central Bank and Bank of England (BoE) cut by 25 basis points (bps). This leaves the Fed at 4.50-4.75%, the ECB deposit rate at 2.75% and the BoE at 4.5%.
