🏦📊 Policy Pricing Divergence Extends: Cable FX Macro

**As seen in Macro Walk report 05/12/23, subscribe at cablefxm.co.uk/reports

• The implied rates section in our Macro Walk report is showing divergence in policy pricing extending, the ECB and BoE now stand as most aggressive restrictive central banks

• Markets now expect the ECB to deliver an additional 43bps of tightening by year-end, rate hike bets are up 9bps from the prior week. For the BoE, swaps now price in an additional 39bps of tightening by December

• We're set to hear from the RBNZ next week, markets fully price in a 25bps OCR rate hike, this would take the policy rate to 5.50%. Moving forward, we noted rate cut bets building as the swap curve now sees 42bps of easing by February, this is up from 15bps seen the prior week