- Comments from Jay Powell – head of the Federal Reserve – signalled a shift in tone. A cut in US rates could be weeks away.
- US consumer expenditure data will be watched closely – if it moves as expected then a March cut in US rates is likely.
- We may see a near term uptick in Eurozone inflation, but the broader trend is downwards – that means the ECB could follow the Federal Reserve and cut rates soon.
- The UK is further behind, and the Bank of England will need to see a sustained fall in wage inflation.