As per the announcement, borrowers in the eurozone and in Canada are expected to get some relief from high interest rates this week. The ECB will set its policy, with the money markets indicating rate cuts are a 93% chance. It is likely to lower the rate on its deposit facility, which banks can use to make overnight deposits with the Eurosystem, to 3.75%, down from its current record high of 4%.
Furthermore, according to a report by the Guardian, there is an 82% chance that the Bank of Canada (BoC) will cut borrowing costs on June 5, 2024, from 5% to 4.75%, market pricing indicates. These odds rose after Canada’s GDP grew more slowly than forecast in the first three months of this year, 2024.
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