What Investors Expect Central Banks to Do in 2011 and 2012

Central Bank Interest Rate Expectations can and do change based upon economic and market developments. The last time I provided updated CB expectations was in July (yes, I apologize for being tardy) but since then we have seen major changes in investors expect central banks to do this year and next.

Here are the cliff notes

FED -- Nada for 2011 and 2012

ECB -- 25bp rate cut by Dec?! (In July no rate hike or cut was expected for 2011 and 1H2012)

BOE -- Nada for 2011 and 2012 but slight shift to dovish bias

BOC -- Rate Cuts now expected in 2012, down from rate hike by April

RBA -- Major Rate Cuts Expected -- 100bp by year end?!

RBNZ -- No Major Changes, Rate Hike Expected March 2012

And here are the details:

Bank of Canada Bank of England Bank of Japan ECB Fed Rate Cut Expectations Federal Reserve Kathy Lien Reserve Bank of Australia reserve bank of australia intervention reserve bank of new zealand

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