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Both the Bank of England (BoE) and the US Federal Reserve are due to announce their latest interest rate decisions this week for the first time since before president Donald Trump's "Liberation Day" announcement.
The Fed is set to reveal its rate decision on Wednesday, following a two-day meeting of the Federal Open Market Committee (FOMC). After its last meeting in March, the US central bank decided to keep its policy rate in the 4.25% to 4.5% range, where it has stood since December.
The Fed is expected to keep rates on hold once again on Wednesday, in its first decision since Trump announced sweeping tariffs on 2 April. While the president later announced a 90-day pause on many of the higher custom tariff rates, trade tensions between the US and China have escalated, and other proposals on duties have kept concerns of an economic slowdown in focus.
The US central bank has faced pressure from Trump to cut rates, with the president's latest call to do so coming after a stronger-than-expected jobs report on Friday.
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Jim Reid, market strategist at Deutsche Bank (DBK.DE), said that the investment bank's "US economists expect the FOMC to keep rates steady and avoid explicit forward guidance about the policy path ahead".
He added: "They continue to see the next rate cut coming in December and while risks are tilted towards earlier easing, in their view this would require a clear weakening of the labour market."
The BoE, on the other hand, is expected to lower rates by 25 basis points (bps) to 4.25% when it shares its latest decision on Thursday.
In a note published on Tuesday, Bank of America (BAC) global research economists and strategists said that they expected to see the BoE announce a cut with "dovish forecasts but cautious guidance".
"Encouraging progress in domestic inflation, lower energy prices and emerging downside growth and inflation risks from tariffs support a 25bps cut in May and faster cuts later in the year (we now expect four cuts this year)," they said.
"But lower financial stability risks, better growth starting point, caution ahead of national insurance contribution (NIC) rise and uncertainty on inflation impact of tariffs imply that a larger 50bps cut is unlikely, in our view."
"Lower inflation and growth forecasts that we expect can open the door for faster cuts in second half of the year, they added. "But for now, we expect the BoE to retain the careful, gradual and meeting-by-meeting guidance, in the midst of uncertainty."