Deutsche Bank: The "small step" by the Federal Reserve does not rule out further "big moves"

German bank analysis suggests that following the European Central Bank's 25 basis point cut in deposit rates last week, some other central banks will announce their policy decisions this week. Most decisions are likely to keep rates unchanged, except for one key decision. It would be a big surprise if the Federal Reserve does not start an interest rate cut cycle on Wednesday. Analyst Volkmar Baur from the bank pointed out, "At the beginning of this week, the market expected the probability of the Federal Reserve's first significant rate cut to be slightly higher than 50%. Our economists still expect a 25 basis point cut, and there are good reasons for it." "However, a small first step does not rule out bigger moves in the future. That's why the current risk tends to a weaker dollar."