Citi discusses the ECB and BoE policy trajectories.
"CitiFX Strategy pointed out earlier this week post Knot: "For now we believe that the ECB is leaning on “constructive ambiguity” to counter EUR strength. On rate cuts themselves, the markets already have 5bps of cuts priced by the end of the year, making it difficult for the ECB to surprise significantly dovishly with this tool," Citi notes.
"Citi Economics have previewed the event, and expect the policy rate to remain unchanged a 0.10% and GILT purchases to hold at GBP 895bn. They also think the next meeting will see the BoE clear a path for negative interest rates where the team expects a 20bp Rate cut in August at the earliest as technical preparations and economic debates about the lower bound needs time," Citi adds.