FICC Focus Macro Matters: Global Central-Bank Meetings Review — Rates Recap
Sep 18, 2025
Join Huw Worthington, Bloomberg Intelligence's European rates strategist, as he delves into the intricacies of recent central bank meetings. He discusses how the Bank of England is moderating gilt sales and the Bank of Canada’s aggressive rate cuts. Worthington shares insights on the impacts of quantitative tightening on funding markets and explores the evolving balance-sheet policies of major banks. The conversation also touches on yield-curve expectations across North American and European markets, highlighting potential shifts and strategies.
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BoE Slows QT To Calm Long-End Yields
- The Bank of England paused rate moves but curtailed quantitative tightening from £100bn to £70bn and cut ultra-long gilt sales.
- Huw Worthington warns QT likely pushed yields higher than the official 15-25bps estimate and they are addressing it.
Watch Canada For More Insurance Cuts
- Expect the Bank of Canada to keep easing toward a terminal rate around 2.25% by year-end.
- Use weak employment prints and forthcoming fiscal stimulus as signals that one or two more "insurance" cuts are likely.
Fed Focuses On Labor To Preempt Recession
- The Fed cut as expected and shifted attention toward labor-market risks as a rationale for easing.
- Ira Jersey highlights that the Fed aims to pre-empt a recession by leaning on employment data rather than current overheating.