Deutsche Bank expects the Fed to cut interest rates three times in 2024, while Bank of America expects that this year's rate cut will be only once, as we believe that the markets have returned to excessive optimism about the upcoming interest rate cycle.
Neither expects to cut interest rates at the Federal Open Market Committee's July meeting this week.
Deutsche Bank says that the first cut of 25 basis points next September, followed by a cut of 25 basis points in November, then another cut of 25 basis points in December, and then stopped until September 2025.
On the other hand, Deutsche Bank also expects the Bank of England to cut the interest rate this week, and the easing cycle will begin.
The vote should be 5-4 votes in favor of a cut of 25 basis points, which would lead to a reduction in the bank's interest rate to 5%.
