Expecting to cut

We have written this week that the current forward curve of interest rates is implying the Fed will cut rates by no less than 5 times 25 bps till January 2025. But what about Europe? Here investors are now also expecting drastic rate cuts by the ECB. 2 months ago, markets were still implying a 3.7% rate for April 2024. Currently, markets expect 3% for April 2024. That is a major dovish shift in market expectations !