Fed, ECB, BoE rate hike expectations stable; RBA cut 73bps by year-end

Market pricing for interest rate hikes by major central banks remains relatively stable, with the Fed expected to hike 54bps, ECB 52bps, BoE 45bps, BoC 47bps, RBNZ 58bps, and SNB 47bps by year-end. The RBA saw a dovish repricing to 73bps in cuts following comments from Governor Bullock favoring a 50bps move. The BoJ is anticipated to hike just 17bps. Expectations have generally returned to previous levels, suggesting stronger catalysts will be needed to further price out rate cuts. Traders should monitor upcoming central bank communications and key economic data to gauge any shifts in the monetary policy outlook, which could significantly impact forex markets.