After the SARB and the Fed kept rates unchanged last week, attention shifts to the Eurozone and Britain this week. Eurozone core CPI (YoY) is due on Wednesday, with the market expecting a 0.1% decline to 2.2%. On Thursday, the ECB will announce its main refinancing rate, which is expected to remain unchanged at 2.15%. Similarly, the Bank of England will release its rate decision on Thursday, with the market also expecting no change, holding at 3.75%.
Against this backdrop, the local market continues to price in two rate cuts this year, with the 2-year swap trading at 6.34% and the 3-year at 6.38%, presenting an opportunity to lock in these cuts.
