In a significant shift in monetary policy expectations, Standard Chartered has joined a growing list of major banks predicting a rate cut at the upcoming Federal Open Market Committee (FOMC) meeting. This forecast aligns with similar predictions from JPMorgan, Morgan Stanley, and Nomura, highlighting a consensus among financial institutions regarding the need for a more accommodative monetary stance. The source notes that this trend reflects broader economic concerns and the potential impact on inflation rates.
Anticipated Rate Cut Scheduled for December 2025
The anticipated 25-basis point rate cut, scheduled for December 9-10, 2025, comes amid a backdrop of uncertain economic data, which has been further complicated by the recent US government shutdown. Analysts from these banks suggest that a modest insurance cut could be a strategic move to support slowing economic growth and mitigate potential risks.
Market Expectations and Financial Institutions' Insights
Standard Chartered has indicated that the likelihood of a rate cut is slightly higher than that of a pause in rate changes, reflecting a cautious yet proactive approach to monetary policy. This alignment among prominent financial institutions is expected to shape market expectations and investor sentiment as the FOMC meeting approaches.
As major banks like Standard Chartered anticipate a rate cut, Ripple CEO Brad Garlinghouse has previously highlighted the critical need for clear crypto regulations. For more details, see Ripple's call.
