Market unrest may push the Fed and the ECB into large rate cuts

The ongoing turbulence in the markets may send rates down, Chief Economist of Sydbank says.

Chief economist at Sydbank, Søren V. Kristensen | Photo: Sydbank/PR

It has been an eventful weekend for oil prices, which have fallen by more than 25 percent, which will have an impact on rates, says Søren V. Kristensen, Sydbank's chief economist.

"We expect that both the Federal Reserve in the US and the European Central Bank (ECB) will reduce rates in the coming weeks. The biggest changes will happen at the Fed, where investors currently expect a rate reduction of 0.75 percentage points later in March," Kristensen says.

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