Bank of America (BofA) analysts have forecasted that June will be a month to remember, with significant decisions anticipated from various central banks.

This week has seen central banks making unexpected moves, such as the Bank of Sweden (Riksbank) cutting interest rates and the Bank of England (BoE) expressing increased confidence in the direction of inflation. BofA analysts noted that these developments offer a glimpse into what June holds for markets, with crucial decisions expected from multiple central banks. They emphasized the importance of the upcoming month, suggesting that it could be a pivotal period for markets.

Despite the BoE's dovish stance, BofA analysts maintain their belief that wage growth will remain resilient. They reiterated their prediction for the first rate cut in August. Looking ahead, BofA highlighted their focus on upcoming March UK labor market data and anticipated improvements in the German ZEW indicator for May. Additionally, insights from the first quarter GDP data for the Eurozone are expected to shed light on the region's growth trajectory.