Bank of America: ECB rate expected to fall to 1.5% by September

The Bank of America Credit Investor Survey shows that investment-grade credit investors expect the ECB to cut rates slightly less than high-yield credit investors.

The survey showed that as many as 41 per cent of investment-grade credit investors expect the ECB's deposit rate to end at 2 per cent, while 37 per cent of high-yield credit investors expect it to end at 1.75 per cent. Bank of America analysts expect the deposit rate to fall to a low of 1.5 per cent by September. The ECB deposit rate is currently 2.75 per cent.