ECB will cut interest rates 'by more than the market expects'

European Central Bank and Bank of England won’t delay cutting rates despite the Fed's apparent reluctance, amid hotter inflation in the US

Capital Economics’ group chief economist Neil Shearing feels that the US will cut rates later this year despite what he calls 'the hawkish rhetoric' of US Federal Reserve chairman Jerome Powell. 

The European Central Bank and Bank of England won’t delay cutting interest rates despite the apparent reluctance of the US Federal Reserve to do so, as inflation runs hotter in the US, a leading economics consultancy has predicted.

Capital Economics’ group chief economist Neil Shearing said in a research note that, even if the US central bank “stands pat, it won’t prevent the ECB and Bank of England from lowering interest rates by more than the market currently expects”.