Forex: Tracking Central Bank Rate Hike Expectations

Wondering when a central bank is set to raise interest rates? Here’s what the market pricing in for each of the major central banks. As you can see, a full 25bp of tightening has not been priced in for the U.S. In contrast, the market expects 2 quarter point hikes from the BoE, ECB, BoC and RBNZ this year. Rate hike expectations can and will change with incoming economic data but these numbers explain why the dollar could under perform this year

Source: Barclays

2011 british pound forecast 2011 cad forecast 2011 dollar forecast 2011 euro forecast dollar forecast Federal Reserve forex blog Kathy Lien

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