Like last month, the EU and UK are cutting rates together in order to pump more money into the system. The Bank of England slashed rates by 100 basis points to 2.0%. Last month the BOE cut rates by 150 basis points, and the expectation is that they’ll probably have to keep cutting further.
Meanwhile, the ECB lopped off 75 bps to drop its rate to 2.50%. Again, you think they’ll have to cut further? Remember, they’re late to the party on flooding the market with cash.