US Q2 GDP likely to print 1.8% - Rabobank

According to analysts at Rabobank, the advance estimate of Q2 US GDP will take the spotlight today, ahead of the FOMC meeting next week.

Key Quotes

“The Bloomberg consensus survey is calling for a 1.8% growth rate (s.a., annualised) in the second quarter of the year, down from the 3.1% seen in Q1. However, with well-entrenched expectations that the Fed will take out an ‘insurance cut’ next week, today’s GDP is unlikely going to change the market consensus about the upcoming Fed meeting.”

“A poor GDP release could again spur some market participants to increase their expectations of a 50bp cut, but a large majority expects the FOMC to deliver a regular 25bp rate reduction, us included. Risks of a follow-up cut later in the year remain elevated, though.”