Mkt View Of A 25bp Fed Rate Cut Too Small - RBS

Markets pricing in Fed to cut rates by 25 bps at next FOMC meeting, but RBS strategist Masafumi Yamamoto says gap "too small" as house expecting slash of half percentage point. Says watch for U.S. economic data later in day, such as housing, Beige Book; if results come in weaker than expected, expect market to price in a 50bp cut at next FOMC meeting